Mukesh may sell stake in RGTIL

After agreeing to sell 30 per cent stake in the 23 blocks in India to BP, Mukesh Ambani is reportedly looking for buyers for its gas transportation and marketing company.

As part of its tie-up with BP, Mukesh Ambani-promoted Reliance Industries Ltd (RIL) had also announced its intention to jointly pursue gas sourcing and marketing opportunities in the country.

A news report on Wall Street Journal’s website today said: “Mukesh Ambani is looking to sell Reliance Gas Transportation Infrastructure Ltd, a business that builds pipelines to carry natural gas across the fast-developing country, according to people privy to the matter.” According to the report, Ambani has contacted bankers to help him sell the business. However, a company spokesman declined to comment on the report.

Reliance Gas Transportation and Infrastructure Ltd or RGTIL, the company that is crucial to RIL’s gas business, is not part of the RIL group. The company that has set up the pipeline network for transportation of RIL gas from its D6 field moved out of the RIL fold to be a subsidiary of Reliance Utilities Private Ltd in 2006.

The entire transaction at that time took place for a mere Rs 5,00,000 which was too small considering that RGTIL had right of use (ROU) for setting up major pipeline networks across the country.