Reliance to set up $3 billion petchem unit

MUMBAI (Reuters) - The board of Reliance Industries Ltd., India's most valuable firm, approved a plan on Saturday to set up a new petrochemicals unit and issue 120 million warrants to its owners to expand its equity base.
The company would invest $3 billion in the petrochemicals project, designed to have an annual capacity of 2 million tonnes, and is expected to be completed by 2010/11, according to a statement from the firm.
The cracker will make ethylene, propylene and other special derivative products, it said.
Reliance Industries is the world's top maker of polyester yarn and fibre and also runs a 660,000 barrel per day refinery in Gujarat.
The company's board approved a preferential allotment of 120 million warrants to its backers, including chairman Mukesh Ambani.
After the conversion it would increase the firm's paid-up capital to 15.13 billion rupees ($342 million) from 13.93 billion, the statement said.
Shares in Reliance Industries ended flat at 1,412.80 rupees in a weak Mumbai market on Friday.
The company also reiterated its plans to raise up to $2 billion from overseas markets to fund a capital spending plan for its oil and gas business.
($1 = 44.2 Indian rupees)

Source : Reuters