A better balance sheet, green plans behind RIL's change of tack for oil biz

RIL and Saudi Aramco signed a non-binding letter of intent in August 2019 for a potential 20 per cent stake acquisition by Saudi Aramco in the O2C business of Reliance.

Reliance Industries’ (RIL’s) decision to not carve out its oil-to-chemicals (O2C) business into a separate company and get in Saudi Aramco as partner may have a lot to do with a realignment that is needed to strengthen its green energy foray.

At the same time, its better debt position (with cash and cash equivalent at Rs 2.59 trillion), surpassing its gross debt of Rs 2.55 trillion, places it in a better financial position, obviating the need to get any equity support.

RIL now plans to take in partners in its new energy and specialty chemical businesses. This means its subsidiaries