And their S.E.Z.

unit in Jamnagar
BACKGROUND & NATURE
OF BUSINESS
● A ₹ 8,16,348 crore conglomerate
● Owning petroleum to textiles businesses;
Telecommunications to retail businesses
● Trough Jio, Reliance Retail, Network 18, Reliance
Petroleum, Saavn, etc.
RELIANCE PETROLEUM
LTD (2008)
● A subsidiary, named RPL, was formed to set up a
Greenfield petroleum refinery and polypropylene plant
in the Special Economic Zone (SEZ) at Jamnagar in
Gujarat.
● This global sized, highly complex refinery was located
adjacent to RIL’s existing refinery and petrochemicals
complex, which is amongst the largest and most
efficient in the world, thus offering significant
synergies.
● Jamnagar has emerged as the ‘Refining Hub of the
World’ with the largest refining complex with an
aggregate refining capacity of 1.24million barrels of oil
INCENTIVES PROVIDED (Unit)

● Duty free import/domestic procurement of goods for

development, operation and maintenance of SEZ units

● 100% Income Tax exemption on export income for SEZ

units under Section 10AA of the Income Tax Act for first
5 years, 50% for next 5 years thereafter and 50% of the
ploughed back export profit for next 5 years.

● Exemption from Minimum Alternate Tax under section

115-JB of the Income Tax Act.
INCENTIVES PROVIDED (Unit)

● External Commercial Borrowing by SEZ units upto US $

500 million in a year without any maturity restriction
through recognized banking channels.

● Exemption from Central Sales Tax & Service Tax.

● Single window clearance for Central and State level

approvals.

● Exemption from State sales tax and other levies as

extended by the respective State Governments.
BENEFITS TO RIL (Developer)

● Exemption from customs/excise duties for

development of SEZs for authorized operations
approved by the BOA.
● Income Tax exemption on export income for a block
of 10 consecutives years within 15 years under Section
80-IAB of the Income Tax Act.
● Exemption from minimum alternate tax under Section
115-JB of the Income Tax Act.
● Exemption from dividend distribution tax under
Section 115-0 of the Income Tax Act.
● Exemption from Central Sales Tax (CST).
● Exemption from Service Tax (Section 7, 26 and Second
Schedule of the SEZ Act).
BENEFITS TO THE
ECONOMY, SOCIETY &
ECOLOGY
● Investment of US$ 6bn in an SEZ at Jamnagar.
● Creation of new jobs and employment opportunities
for thousands of individuals.
● Rapid industrialisation & growth in the region
● Increased revenues to the exchequer.
● Boost to the GDP, IIP & PMI projections.
● Capable of producing Clean Fuels for the future.
● Exports by RPL to bring in Foreign Currency.
● Reduce dependency on foreign crude imports.
● And ofcourse, unlocking shareholder value.
CURRENT STATUS OF THE
VENTURE
● RPL has been merged into RIL
● The acquisition took place with a share swap in the ratio
16:1
● It created one-fourth of the world’s total complex
refining capacity
● Became the world’s largest refining hub, 17th largest
refining company, 5th largest polypropylene
producer
● Derives synergies from combined operations — crude
sourcing, product placement, supply chain optimisation.
● Acquires flexibility in operations planning, higher
utilisation of combined cash flows.