Reliance Industries Ltd signed memorandums of understanding on Friday with the Gujarat government worth Rs 67,550 crore at the Vibrant Gujarat 2007 Investors Summit. A substantial amount in the agreements is for the on-going crude oil refining special economic zone project of the company near Jamnagar.
Day one of the summit witnessed the state signing 104 agreements worth Rs 2,51,967 crore. The event, which was organised with the intention of getting investments in 12 core sectors, including power, oil and gas, chemicals and petrochemicals, SEZs, ports, and urban development, also attracted interest from 100 companies abroad to invest in Gujarat in the near future.
Tata group chief Ratan Tata, the chief guest on the occasion, echoed the general sentiment there when he said, "It is stupid if you are not in Gujarat." He said it was the right time to enter the state and stay for long.
Shashi Ruia, chairman of the Essar group, announced an investment of Rs 10,500 crore for the expansion of its Hazira refinery while state-run Oil and Natural Gas Corporation announced an investment of Rs 16,000 crore for a petro-complex at Dahej. The Adani group said it would pump in Rs 25,000 crore in ports and SEZs.
Announcing Reliance Industries' intention to sign the agreement with the state government, chairman Mukesh Ambani described the Gujarat government as 'non-bankrupt'.
In addition to the SEZ, the company also plans to invest heavily in a lignite gasification project in south Gujarat along with state-owned Gujarat Mineral Development Corporation. Reliance Industries will also invest in a pipeline project that will connect the KG Basin with the west coast.
In his address at the summit, Ambani, terming the participation of his company as a 'hat-trick' said: "Reliance's engagement in Gujarat is a partnership to celebrate the spirit of a state that has become an example in looking ahead in the path of prosperity. Vibrant Gujarat has become a milestone for Reliance Industries."
"In the first Vibrant Gujarat summit in 2003, we signed agreements for projects worth Rs 9,300 crore, mainly in the petrochemical and petroleum domains," he added. "We have virtually completed all our projects announced then."
In the 2005 summit, encouraged by the state, the company expanded its Jamnagar refinery. The company has already started construction of another refinery at Jamnagar, due to be completed in 2008.
The company's investments in the state would be in its Jamnagar SEZ, refinery and polypropylene plant, coal and lignite's gasification, port, city gas distribution and a gas pipeline planning to link Godavari to Karnavati, said Ambani.
"Apart from this, we intend to firm up our initiatives in agriculture and farming," he added. Ambani also said this investment would generate direct and indirect employment opportunities for approximately 200,000 people.
Reliance also intends to establish a private university in the area of life sciences in Gujarat.
Among the agreements signed today at the summit SEZs led the way with 26 MoUs of Rs 1,42,685 crore followed by 11 MoUs of Rs 55,139 crore in power.
