Reliance Industries plans expansion at Jamnagar refinery

India’s largest company in terms of market capitalisation, Mukesh Ambani-led Reliance Industries, may expand its refining capacity at Jamnagar, Gujarat, by 30 MT by 2030, as per media reports.

Currently, Jamnagar complex has capacity of 60 MT per year, which is world’s largest oil refinery facility.

As per media reports, the company can expand this capacity to 100 MT per year by 2030 with a projected cost of ~$ 10 billion.

Despite government’s emphasis on electric vehicles, this development clearly indicates that Reliance Industries is not unduly worried about electric vehicles replacing petrol and diesel vehicles any time soon and has positive outlook on India’s fuel demand.

However, this move will not have any near-term material impact on company’s financials, but investors need to keep an eye on the stock.

The stock of Reliance Industries was trading today at Rs 840.3, marginally down by 0.8 per cent as of 2.05 p.m.