• Latest
  • Most Read
Mukesh Ambani, Reliance, Saudi Aramco

Why Reliance Industries scrapped its massive $15 billion deal with Saudi Aramco

2 years ago
We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

21 mins ago
Manish Kashyap: The Thorn in Nitish Kumar’s Side

Manish Kashyap: The Thorn in Nitish Kumar’s Side

25 mins ago
Rahul Sharma: A true symbol of Sanatana Dharma

Rahul Sharma: A true symbol of Sanatana Dharma

30 mins ago
Maharaja Kharavela: Perhaps the greatest Indian King ever

Maharaja Kharavela: Perhaps the greatest Indian King ever

35 mins ago
The Vaccine War review: Yes, Bharat can do it!

The Vaccine War review: Yes, Bharat can do it!

2 hours ago
Debt is where AAP is!

Debt is where AAP is!

2 hours ago
Who is Jaswant Singh Gill, the inspiration behind ‘Mission Raniganj’?

Who is Jaswant Singh Gill, the inspiration behind ‘Mission Raniganj’?

2 hours ago
Home Ministry orders CBI probe against Kejriwal’s “Sheeshmahal”!

Home Ministry orders CBI probe against Kejriwal’s “Sheeshmahal”!

2 hours ago
Washington Post leaks the truth about Nijjar’s death

Washington Post leaks the truth about Nijjar’s death

20 hours ago
No, OYO is not the communion spot for horny youngsters!

No, OYO is not the communion spot for horny youngsters!

20 hours ago
IAS Officer who took her dog for a walk in the stadium “Compulsorily Retired”!

IAS Officer who took her dog for a walk in the stadium “Compulsorily Retired”!

20 hours ago
AFSPA re-imposed in Manipur after several months!

AFSPA re-imposed in Manipur after several months!

20 hours ago
The sad, tragic journey of Justin Trudeau

The sad, tragic journey of Justin Trudeau

1 day ago
Sanath Jayasuriya, the greatest all-rounder who never got his due

Sanath Jayasuriya, the greatest all-rounder who never got his due

1 day ago
Canada learns diplomacy the “Jaishankar Way”

Canada learns diplomacy the “Jaishankar Way”

1 day ago
  • About us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI हिन्दी
TFI Global
Friday, September 29, 2023
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

    We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

    Manish Kashyap: The Thorn in Nitish Kumar’s Side

    Manish Kashyap: The Thorn in Nitish Kumar’s Side

    Rahul Sharma: A true symbol of Sanatana Dharma

    Rahul Sharma: A true symbol of Sanatana Dharma

    Debt is where AAP is!

    Debt is where AAP is!

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How TVS transformed from a truck maker to a motorcycle giant

    How TVS transformed from a truck maker to a motorcycle giant

    ASUS to relocate its primary manufacturing hub from China to India

    ASUS to relocate its primary manufacturing hub from China to India

    US Business Basics: Essential Legal and Regulatory Insights for Indian Founders

    US Business Basics: Essential Legal and Regulatory Insights for Indian Founders

    Why IKEAs and Urban Ladders could not replace the friendly neighbourhood carpenter

    Why IKEAs and Urban Ladders could not replace the friendly neighbourhood carpenter

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Washington Post leaks the truth about Nijjar’s death

    Washington Post leaks the truth about Nijjar’s death

    The sad, tragic journey of Justin Trudeau

    The sad, tragic journey of Justin Trudeau

    Canada learns diplomacy the “Jaishankar Way”

    Canada learns diplomacy the “Jaishankar Way”

    “Why don’t ask Pakistan for Khalistan?” Canadian journalist drops a bombshell

    “Why don’t ask Pakistan for Khalistan?” Canadian journalist drops a bombshell

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Maharaja Kharavela: Perhaps the greatest Indian King ever

    Maharaja Kharavela: Perhaps the greatest Indian King ever

    NAVIGATING THE CCNA EXAM: A BEGINNER’S HANDBOOK TO IT CERTIFICATION

    NAVIGATING THE CCNA EXAM: A BEGINNER’S HANDBOOK TO IT CERTIFICATION

    When BR Ambedkar openly challenged the Nizam Shahi

    When BR Ambedkar openly challenged the Nizam Shahi

    From Nizam Shahi to India’s Defender: Lt. Col. Tarapore’s Incredible Story

    From Nizam Shahi to India’s Defender: Lt. Col. Tarapore’s Incredible Story

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    The Vaccine War review: Yes, Bharat can do it!

    The Vaccine War review: Yes, Bharat can do it!

    Who is Jaswant Singh Gill, the inspiration behind ‘Mission Raniganj’?

    Who is Jaswant Singh Gill, the inspiration behind ‘Mission Raniganj’?

    Sanath Jayasuriya, the greatest all-rounder who never got his due

    Sanath Jayasuriya, the greatest all-rounder who never got his due

    Lauki Soup health benefits

    Discovering Wellness: 9 Health Benefits of Bottle Gourd (Lauki) Soup

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

    We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

    Manish Kashyap: The Thorn in Nitish Kumar’s Side

    Manish Kashyap: The Thorn in Nitish Kumar’s Side

    Rahul Sharma: A true symbol of Sanatana Dharma

    Rahul Sharma: A true symbol of Sanatana Dharma

    Debt is where AAP is!

    Debt is where AAP is!

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How TVS transformed from a truck maker to a motorcycle giant

    How TVS transformed from a truck maker to a motorcycle giant

    ASUS to relocate its primary manufacturing hub from China to India

    ASUS to relocate its primary manufacturing hub from China to India

    US Business Basics: Essential Legal and Regulatory Insights for Indian Founders

    US Business Basics: Essential Legal and Regulatory Insights for Indian Founders

    Why IKEAs and Urban Ladders could not replace the friendly neighbourhood carpenter

    Why IKEAs and Urban Ladders could not replace the friendly neighbourhood carpenter

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Washington Post leaks the truth about Nijjar’s death

    Washington Post leaks the truth about Nijjar’s death

    The sad, tragic journey of Justin Trudeau

    The sad, tragic journey of Justin Trudeau

    Canada learns diplomacy the “Jaishankar Way”

    Canada learns diplomacy the “Jaishankar Way”

    “Why don’t ask Pakistan for Khalistan?” Canadian journalist drops a bombshell

    “Why don’t ask Pakistan for Khalistan?” Canadian journalist drops a bombshell

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Maharaja Kharavela: Perhaps the greatest Indian King ever

    Maharaja Kharavela: Perhaps the greatest Indian King ever

    NAVIGATING THE CCNA EXAM: A BEGINNER’S HANDBOOK TO IT CERTIFICATION

    NAVIGATING THE CCNA EXAM: A BEGINNER’S HANDBOOK TO IT CERTIFICATION

    When BR Ambedkar openly challenged the Nizam Shahi

    When BR Ambedkar openly challenged the Nizam Shahi

    From Nizam Shahi to India’s Defender: Lt. Col. Tarapore’s Incredible Story

    From Nizam Shahi to India’s Defender: Lt. Col. Tarapore’s Incredible Story

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    The Vaccine War review: Yes, Bharat can do it!

    The Vaccine War review: Yes, Bharat can do it!

    Who is Jaswant Singh Gill, the inspiration behind ‘Mission Raniganj’?

    Who is Jaswant Singh Gill, the inspiration behind ‘Mission Raniganj’?

    Sanath Jayasuriya, the greatest all-rounder who never got his due

    Sanath Jayasuriya, the greatest all-rounder who never got his due

    Lauki Soup health benefits

    Discovering Wellness: 9 Health Benefits of Bottle Gourd (Lauki) Soup

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
No Result
View All Result

HOME » Politics » Trending » Why Reliance Industries scrapped its massive $15 billion deal with Saudi Aramco

Why Reliance Industries scrapped its massive $15 billion deal with Saudi Aramco

TFIPOST News Desk
by TFIPOST News Desk
23 November 2021
in Trending
0
Mukesh Ambani, Reliance, Saudi Aramco
5.7k
VIEWS
Share on FacebookShare on Twitter

It has been more than two years since Saudi Arabia’s national oil company, Saudi Aramco, announced a 15 billion dollars investment in oil to chemical (O2C) business for a 20% stake. It has been more than two years, but the deal is not finalized yet, and now according to Reliance Industries, both companies are re-evaluating the deal.

“RIL and Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context,” RIL said in a statement.

Why was the deal called off?

However, the primary reason behind calling off the deal seems to be something else. The primary reason behind the deal being re-evaluated is probably Reliance’s lower debt. Back in August 2019, when the deal was announced, Reliance’s O2C business had above 20 billion dollars debt and telecom business also had more than 20 billion dollars debt. So, the total debt of the company was more than 40 billion dollars, and it wanted to pay back at least 20 billion dollars with money from Saudi Aramco.

Also read: Saudi Aramco to buy 20 per cent stake in Reliance Industries OTC biz in one of India’s biggest FDI deals

But after the pandemic, Reliance Industries sold a 33% stake in Jio for 22 billion dollars, and paid back all the telecom entity debts. Now, O2C entity has 25 billion dollars from the parent Reliance Industries Limited (RIL) which does not look bad on the balance sheet. The company is no longer in desperate need of 15 billion dollars from Saudi Aramco, and Saudi Arabia also no longer trusts Reliance ambitions in the O2C business.

Given the commitment of Reliance to invest 10 billion dollars in the green energy business and have the Gigafactories in Jamnagar (the location of O2C business), Saudi Aramco is of the view that the former would get more attention and energy than the latter.

“These plans are counter-intuitive to Aramco’s interest and world view. Oil production countries have been making the case that fossil fuel assets need to be given more time and investment so that the energy transition can be gradual,” said an equity analyst.

In the last few months, Reliance Industries acquired many companies, made investments in multiple new energy startups, and stitched partnerships with numerous firms to make a big bang entry in the green energy market.

The largest acquisition is of REC Solar from ChemChina, for 771 million dollars. Reliance New Energy Solar Limited also purchased 40% shares of Sterling and Wilson Solar from Shapoorji Pallonji & Co. Pvt. Ltd (SPCPL) and Khurshed Yazdi Daruvala, for 2,845 crore rupees.

Also read: Huge spike in oil prices as attacks on Saudi Aramco facilities threaten a geopolitical fallout. How vulnerable is India to this?

Reliance Solar became the lead investor with an investment worth 45 million dollars in Series C funding of German solar wafer manufacturer NexWafe GmbH (NexWafe).

Apart from solar, the other big green energy sector where Mukesh Ambani is focusing on, is Hydrogen energy. RIL partnered with Denmark’s Stiesdal, towards its ‘1-1-1’ green-hydrogen goal. Stiesdal has developed an electrolysis technology that is cheaper than others, and this company will help RIL in its hydrogen-driven vehicles ambitions.

Atmanirbharta in green energy:

During the last Annual General Meeting, Mukesh Ambani announced that his company will invest 75,000 crore rupees in green energy, especially solar and hydrogen, in order to become the largest energy producer in the country and to achieve Prime Minister Narendra Modi’s dream of atmanirbharta in the energy sector.

Reliance has also made a commitment to become a net-zero (zero carbon emission) company by 2030, thanks to its massive investment in green energy. The current worldview of Reliance does not match that of Saudi Aramco, which wants a gradual shift towards green energy, so that fossil fuel-dependent nations can manage the transition of the economy.

Also read: Rohini Singh goes international, urges Indian Muslims to attack Reliance for its deal with Saudi-Aramco

Saudi Aramco suspects that the 15 billion dollars worth of investment will be used by RIL to pay back O2C business’s debt, so that the company can freely raise money for the green energy entity.

The green energy business is the future, and given Prime Minister’s call for atmanirbharta in energy through a transition from fossil fuel to green energy, Reliance no longer has an intention to take Saudi Aramco’s investment for the legacy business.

Reliance Industries is placing itself very strategically, as it plans to take over the market now dominated by Chinese firms (supply of equipment and technologies) not much into production. So, while the companies like Adani Group, ReNew power, and many other companies in the energy business would focus on the production part, RIL plans to end India’s dependence on China for production equipment and technologies.

As TFI has argued earlier, Hydrogen fuelled vehicles and not electric vehicles, are the future of mobility, given the various advantages they have over electric vehicles. So, on one hand, electricity production will move to solar, and on the other hand, mobility will move to hydrogen, and Mukesh Ambani is set to benefit enormously from both. Also, with the entry into the green energy sector, his company will play a very crucial role in achieving Prime Minister Modi’s dream of atmanirbharta in the energy sector.

Tags: Atmanirbhar BharatGreen EnergyMake In IndiaMukesh AmbaniRelianceRILSaudi Arabia
Share47TweetSend
Previous Post

Guru Garry – The only South African who won a World Cup

Next Post

India may give another heartburn to Biden as it plans to buy Russia’s S-500 and S-550 anti-missile systems too

TFIPOST News Desk

TFIPOST News Desk

India’s most loved Right-Wing blog

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

We need to resuscitate abandoned temples, not beg for “World Heritage Status”!

29 September 2023
Manish Kashyap: The Thorn in Nitish Kumar’s Side

Manish Kashyap: The Thorn in Nitish Kumar’s Side

29 September 2023
Rahul Sharma: A true symbol of Sanatana Dharma

Rahul Sharma: A true symbol of Sanatana Dharma

29 September 2023
Maharaja Kharavela: Perhaps the greatest Indian King ever

Maharaja Kharavela: Perhaps the greatest Indian King ever

29 September 2023

Popular This Week

Vijay Darda Coalgate
Opinions

The Vijay Darda Cover-Up: How media shielded a Coalgate scam mastermind

by Atul Kumar Mishra
25 September 2023
India Vs Canada+West: What happened, why it happened and what will happen?
Geopolitics

India Vs Canada+West: What happened, why it happened and what will happen?

by Atul Kumar Mishra
24 September 2023
“Why don’t ask Pakistan for Khalistan?” Canadian journalist drops a bombshell
Geopolitics

“Why don’t ask Pakistan for Khalistan?” Canadian journalist drops a bombshell

by Animesh Pandey
27 September 2023
No more Bollywood films for Nayanthara?
Cinema

No more Bollywood films for Nayanthara?

by Animesh Pandey
22 September 2023
Trudeau Loses America to Modi’s Magic
Geopolitics

Trudeau Loses America to Modi’s Magic

by Animesh Pandey
25 September 2023

©2023 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFI Official Merchandise
TFI हिन्दी
TFI Global
  • About us
  • Careers
  • Brand Partnerships

©2023 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost