Oil India holding discussions to buy 51% stake in RGTIL

Oil India holding discussions to buy 51% stake in RGTILState-run Oil India Ltd (OIL) has said on Monday that it is holding discussions to acquire 51 per cent in Mukesh Ambani owned Reliance Gas Transportation Infrastructure Ltd (RGTIL).

OIL Director of Finance, T K Ananth Kumar said that the company has expressed interest in buying 51 per cent stake in RGTIL. OIL is among the 11 firms, including six foreign firms that have expressed interest to buy stake in RGTIL.

GAIL India Ltd and energy major Enbridge are also among the firms interested in buying stake in the company. JPMorgan, Citi and SBI Caps are managing the stake sale for the company. RGTIL was a subsidiary of Reliance Industries Ltd (RIL) and it was incorporated in March, 2003 for transporting natural gas from eastern offshore gas fields to consumption centres.

After two years, the company was transferred to Mukesh Ambani, who was the chairman of RIL. RGTIL today operates a 1,396-km East-West gas pipeline. The 48-inch pipeline from Kakinada in Andhra Pradesh to Bharuch in Gujarat transfers natural gas from the company's KG-D6 fields.

Meanwhile, Relogistics Infrastructure Ltd (Relog), a subsidiary of RGTIL, has received approval to lay Kakinada- Basudebpur-Howrah pipeline, Kakinada-Chennai line, Chennai- Bangalore-Mangalore pipeline and ChennaiTuticorin line.