RIL to hive off gasifier business to 100% arm – Times of India

MUMBAI: Reliance Industries (RIL) has agreed to transfer its gasification project in Jamnagar, Gujarat, to a 100% arm, the company said late Wednesday evening. It will transfer the gasification undertaking on a slump sale basis.
Slump sale means transfer of a business of a company for a lump sum without assigning any values to individual assets and liabilities of the entity.
The move, said RIL, will help in unlocking value in the gasifier business, which could include induction of external investors and partners. The separation scheme would be effective from March 31, 2022 and requires the approval of shareholders, NCLT and other regulatory authorities.
The gasification project in Jamnagar was set up to produce syngas (synthesis gas) to meet the energy requirements as refinery off-gases, which earlier served as fuel, were repurposed into feedstock for the Refinery Off Gas Cracker (ROGC).
Syngas as a fuel ensures reliability of supply and helps reduce volatility in the energy costs. It is also used to produce hydrogen for consumption in the Jamnagar refinery.

Source link