A report by Bloomberg has revealed that RIL is contemplating opting for the incentives
Reliance Industries Ltd has invested Rs 1 lakh in cash in 10,000 equity shares of its newly incorporated subsidiary Reliance New Energy Solar Ltd (RNESL).
Billionaire Mukesh Ambani-headed Reliance Industries Ltd (RIL) is bullish on its newly established clean energy business unit Reliance New Energy Solar Ltd (RNESL) as it invests Rs 1 lakh in cash in the subsidiary’s 10,000 equity shares.
In a regulatory filing on Monday, RIL noted that RNESL is yet to commence its business operations. RNESL has been incorporated to undertake activities relating to solar energy.
“It is hereby informed that the company has invested Rs 1,00,000 in cash in 10,000 equity shares of Rs 10 each of ‘Reliance New Energy Solar Ltd’ (RNESL), a newly incorporated wholly-owned subsidiary,” the conglomerate said in a regulatory filing.
The company further explained that the investment in RNESL does not fall within related party transactions and the promoter, promoter group or group companies do not have any interest in RNESL. The investment also did not require any governmental or regulatory approvals.
As part of its vision for the company’s rapid transition to a new era of green, clean and renewable energy, RIL Chairman and Managing Director Mukesh Ambani, last month, unveiled the strategy and roadmap for its New Energy and New Materials business with an investment of Rs 60,000 crore over a period of three years.
Reliance’s foray into the green energy space was unveiled by Chairman and MD Ambani last month during the company’s annual general meeting.
The giant revealed major ambitious plans for its new unit which includes an investment of Rs 75,0000 that would be directed towards setting up four gigafactories to make renewable energy equipment like solar photovoltaic cells, green hydrogen, batteries and fuel cells over the next three years.
Although stocks of the company saw an immediate slump following the announcement, companies like JSW Energy have hinted at their plans to strike a partnership with the conglomerate to source solar equipment.
Eyeing Solar PLI Scheme
It is hard to ignore how well-timed the announcement is, which just to months after the government approved a Rs 4,500 crore production-linked incentive (PLI) scheme for manufacturing solar PV modules in the country.
A report by Bloomberg has revealed that RIL is contemplating opting for the incentives. Citing sources familiar with the matter, the report said the company attended a pre-bid meeting held last month to discuss the subsidy program.
Ambani added that the new unit will set up 100 GW of solar power generating capacity in the country, with a significant part of this coming from rooftop solar and decentralised solar installations in the village.
