The Patalganga Power unit of the Reliance Industries, which was promoted to set up a gas based power project in Maharashtra, will be transferred to Global Fuel Management Services (GFMS), a company that is a part of the Anil Dhirubai Ambani Enterprises. According to the scheme of demerger filed by RIL in the Bombay High Court, sections 391-394 of the Companies Act show that GFMS, will not just write gas supply contracts and trade in gas and other liquid fuels , but will also hold 50,000 shares of Reliance Patalganga Power.
This company was originally supposed to implement the Reliance groups gas based 4,000 MW power plant in Patalganga. The project was announced in the late 1990s but never took off due to delays. RILs other investments in coal-based undertakings such as 50,000 shares of Reliance Power, 423,268 shares of Hirma Power, 50,000 shares of Jayamkondam Power and 50,000 shares of Reliance Thermal Energy along with 9.9 crore shares of Reliance Ebnergy are being transferred to Reliance power Ventures.
RIL had last month announced the creation of four special purpose vehicles or holding companies, which will buy RILs investments in power, financial services and telecom and issue shares to RIL shareholders. So, GFMS, the fourth company will not just be a trader but also a producer of gas-based power, according to the demerger scheme.
The demerger scheme was filed by RIL earlier this month. The court directed the company to call a meeting of shareholders on October 21, to consider and approve the demerger proposals. The scheme details the demerger of the demerged company called Reliance Industries and the Reliance Energy Venture, the coal-based energy company along with GFMS, the gas-based energy company and the Reliance Communication Ventures, the telecom company.
Each of RILs undertakings will be transferred to separate companies with independent focus. RIL will continue its interests in petrochemicals, refining, oil and gas exploration and production along with textiles and will develop other new areas.
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| Posted : 9/21/2005 |
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