RIL withdraws merger of Reliance New Energy Limited with self
Reliance New Energy Limited‘s merger(RNEL) of its renewable energy business, with itself has been abandoned, according to Reliance Industries Limited (RIL), the largest conglomerate in India. The company said in a regulatory filing that the Board had decided the new energy/renewable energy business should be conducted through RNEL and the Scheme be withdrawn following a review of the business and investment structure for new energy/renewable energy. The merger plan was accepted by the board of the company’s wholly-owned subsidiary, RNEL, in May. The National Company Law Tribunal, Mumbai Bench is still deliberating whether to approve the plan.
NewsOTG gathered that RIL’s new energy giant plants in Jamnagar are progressing significantly notwithstanding the cancellation of the merger. Mukesh Ambani, the company’s chairman and managing director, said in RIL’s results statement on Friday that the plants’ advancement puts them on track to accomplish their objectives of switching to cleaner energy and promoting sustainable growth. Ambani is confident that Reliance’s large investments and strategic alliances in the field of renewable energy will change the global and Indian energy landscape in the years to come. An enormous conglomerate with holdings in a variety of industries, including energy, petrochemicals, textiles, natural resources, and retail, is called Reliance Industries Limited. The subsidiary of the business, RNEL, was established to concentrate on renewable energy, a market that is expanding in India.
The corporation has decided to continue pursuing its renewable energy business under its wholly-owned subsidiary, as evidenced by the withdrawal of the merger of RNEL with RIL. RIL may have more flexibility and control thanks to this tactical choice as it looks to expand its portfolio of renewable energy sources in India. Overall, considering the company’s considerable investments and strategic ties in the industry, the decision to cancel the acquisition might not have a big impact on RIL’s renewable energy business. The ambitious goals the Indian government has set for renewable energy create a huge market potential for firms like RIL. RIL’s dedication to the field of renewable energy is therefore expected to endure.