RIL gets environmental clearnace for Rs 2,338 cr expansion of petrochemical complex in Maharashtra

The proposal is to expand the gas cracker and downstream plants by way of debottlenecking, expansion and change of fuel in captive power plant (CPP) along with expansion and rebuilding of residential township

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Reliance

Presently, RIL Nagothane uses a mixture of ethane and propane to produce downstream products and by-products. The proposal is to modify its feedstock ratio in its gas cracker plant owing to availability of imported shale gas ethane. That apart, the company has proposed to enhance CPP capacity from 85 mw to 100 mw by way of refurbishing and also use ethane as a fuel owing to its economic viability and availability.  Further, the proposed project also includes expansion of the existing township

Why is this important

The proposed change in feedstock mixture will result in higher production of ethylene. The company also wants to expand the capacities of downstream products/by-products to accommodate the increased ethyelene production.

How will the stock be impacted

This capex would be incrementally positive for Reliance Industries (CMP Rs. 927, M Cap Rs. 5,87,456 Cr, PE 11.9x FY20E EV/Ebitda 9.1x FY20E)

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