Archive for April, 2017

Reliance Industries Limited Commissioned the Production from its CBM Field in Madhya Pradesh

April 25, 2017

Mukesh Ambani led Reliance Industries Limited (RIL) has commercially initiated the coal bed methane (CBM) production from its Sohagpur blocks in Madhya Pradesh. Presently, CBM produced by the Mukesh Ambani-led company is being supplied for starting the functioning of the Shahdol Phulpur Pipeline (SHPPL).

CBM production in Sohagpur

CBM production from the Sohagpur fields started on 24th March 2017. In a company statement, RIL said that the production will be increased in coming 15 to 18 months. It further stated that this will increase the output and make RIL one of the biggest unconventional natural gas producers in India.

In 2001, the first round of CBM block bidding was conducted by the Government of India. During that time, RIL obtained the license to explore two CBM blocks located next to each other. These blocks were Sohagpur (West) and Sohagpur (East) extending up to an area of 995 square kilometers. In the first phase of development, RIL drilled over 200 wells that were connected to two gas gathering stations. In the next developmental phases, RIL will drill another 600 to 800 wells and establish the required infrastructure.

Reliance Gas Pipelines Limited (RGPL) is RIL’s completely owned subsidiary. It set up the SHPPL, which runs for 302 kilometers. The pipeline makes a connection for Sohagpur CBM fields between Shahdol and State-run Gas Authority of India Limited (GAIL)’s Hazira-Vijaipur-Jagdishpur (HBJ) pipeline network at Phulpur in Uttar Pradesh. In a media release, RIL stated that the establishment of the new pipeline network enabled the CBM Gas fields to be connected to the Indian Gas Grid.

Government’s decision on CBM

RIL’s development came after the Cabinet recently decided to allow CBM producing companies to sell gas to its own subsidiaries. It also gave pricing and marketing freedom for CBM.

According to the Cabinet decision, the contractor has to establish a competitive and completely transparent process for CBM sale while revealing the market price for arm’s length sales. The contractor also needs to check that the best possible rates for gas are being quoted without any restrictive commercial practices.

In India, around 33 CBM blocks have been awarded, so far. Out of these, only four are operational. The four blocks result in a total production of nearly 1.17 million standard cubic meters per day, while the reserves in India are expected to have the capacity of around 92 trillion cubic feet.

The Indian Government is looking at ways to boost the production of CBM, which is an eco-friendly natural resource. Prior to the decision, CBM has remained trapped in coal beds.

About RIL

Mukesh Ambani led RIL is the largest private sector corporation in India. It is also one of the leading exploration and production players in the country. Its upstream business includes exploration, appraisal, development, and production.
Apart from the Sohagpur CBM blocks, RIL has domestic blocks in Panna Mukta and Tapti (PMT), Mahanadi, Krishna Godavari, Gujarat Saurashtra, Cauvery Palar, and Cambay Basin.

Summary

RIL has commercially begun coal bed methane (CBM) production from its Sohagpur blocks in Madhya Pradesh on the 24th of March 2017.

Reliance Jio Earned the Top Position in Terms of 4G Download Speed and Availability of 4G Network

April 24, 2017

The telecom arm of Reliance Industries (RIL), Reliance Jio Infocomm Limited has been creating a huge impact on the Indian telecom sector since its launch on 5th September 2016.

Reliance Jio’s download speed as per TRAI

According to a report by the Telecom Regulatory Authority of India (TRAI), in March 2017, the average download speed of Mukesh Ambani-led Reliance Jio was 16.48 megabit per second (Mbps). This was almost double of what its competitors offered. Theoretically, one Bollywood movie can be downloaded in around five minutes at 16 Mbps speed. TRAI gathered and calculated the data download speed on a real-time basis using its MySpeed application.

Reliance Jio’s challenge

In an advertisement campaign by a leading telecom operator, the company claimed to be ‘officially’ the fastest network in the country.

However, Reliance Jio challenged the company, after which, the Advertising Standards Council of India (ASCI) found the claim misleading. ASCI asked the telecom company to modify or withdraw the advertisement by 11th of April 2017.  The company complied with the same.

OpenSignal report 

According to a report by OpenSignal, Reliance Jio ranked the highest in terms of availability of the 4G network. A statement said that OpenSignal’s testers found a 4G signal availability 91.6 percent of the time on Reliance Jio’s network. The company stated that Reliance Jio’s network availability was the widest and outstanding as per global standard. On the other hand, no other telecom operator in India scored more than 60 percent in OpenSignal’s 4G network availability tests.

A private company, OpenSignal conducted the survey in Delhi, Mumbai, Karnataka, and Tamil Nadu.  The survey was conducted between the period of December 2016 and February 2017. It claimed to have gathered information from 1.3 billion data points covering a total of 93,464 subscribers. 

Offers by Reliance Jio 

Since its launch in September 2016, Mukesh Ambani led Reliance Jio has been providing several beneficial offers to its users. Soon before the end of its free services, Reliance Jio announced the Jio Prime subscription in February 2017. The Jio Prime membership was priced at INR 99 with a validity up to 31st March 2018. Jio Prime members enjoy additional benefits as compared to non-prime members.

Even after initiating its paid services, the company successfully garnered more than 72 million subscribers. Recently, the company announced Jio Dhan Dhana Dhan offer, under which Jio users could enjoy unlimited data and voice calling benefits for 84 days. Jio Prime members enjoy 1 GB 4G data per day, free voice calls, SMS, and access to Jio apps on a recharge of INR 309. With a recharge of INR 509, the users enjoy 2 GB 4G data per day along with the aforementioned benefits. Non-prime members could avail of these benefits with a recharge of INR 408 or INR 608 respectively.

Summary

Reliance Jio ranked first in terms of 4G download speed as per a report by the Telecom Regulatory Authority of India (TRAI). Moreover, it also recorded the widest availability of 4G network according to a report by OpenSignal.

Jio Offers Discounts on AirAsia Flight Bookings and International Calls

April 18, 2017

Mukesh Ambani-led Reliance Jio has intensified the competition in the telecom sector since its launch. Post the announcement of its low data rates, the telecom company is now offering attractive discounts to all its users.

AirAsia offer for Jio users

Reliance Jio subscribers enjoy a 15 percent discount on AirAsia domestic and international flight bookings. Jio users may avail of the benefits using the AirAsia app. The offer is valid from 17th April 2017 up to 30th April 2017. Users may book the tickets for the travel period, 20th June 2017 to 30th September 2017. Over 72 million active Jio users would enjoy the benefits of this offer.

AirAsia stated that the discount is applicable to flights which are run by its India, Thailand, and other main units. However, it is not applicable to its Indonesia and Philippines units.

International calling offer 

Reliance Jio is offering international calls at a price as low as INR 3 per minute. Jio users may avail of this offer by opting for the ‘rate-cutter plan’, which is priced at INR 501.

It allows Jio users to make calls at INR 3 per minute to the United States, Canada, United Kingdom, Taiwan, Brazil, Switzerland, Poland, Italy, Sweden, Austria, New Zealand, Singapore, Hong Kong, Belgium, French Guinea, Malta, Luxembourg, Morocco, Andorra, Mongolia, Portugal, Romania, and Puerto Rico. Besides, the company is also offering a rate of INR 4.8 per minute for international calls to Pakistan, Argentina, South Korea, Japan, France, Israel, and Denmark.

Other Reliance Jio offers

Reliance Jio gives high data speeds to its customers at affordable prices. The company has received over 100 million customers since its launch in September 2016. It has retained over 70 percent of its users after making the services paid, this year.

In February 2017, Chairman Mukesh Ambani announced the Jio Prime subscription plan. Jio Prime members enjoy added benefits on regular plans. The Jio Prime subscription was priced at INR 99.

Under the Jio Prime membership, the company offers unlimited data, unlimited local and national voice calling, free SMS services, free national roaming, and free access to Jio apps.

Recently, the company announced the ‘Jio Dhan Dhana Dhan’ offer. Under this, Reliance Jio is giving unlimited data to its users for 84 days on their first recharge. At INR 309, Jio Prime members get unlimited data with a usage cap of 1 GB per day. At INR 509, Jio Prime users get unlimited data with a usage cap of 2 GB per day. Non-prime members will also be able to access these offers by paying INR 99 extra that is at INR 408 and INR 608 respectively.

Heavy discounts by Reliance Jio have been a major concern for the incumbent players. As per a report from Credit Lyonnais Securities Asia (CLSA), revenue of Indian telecom companies has decreased for the first time since 2009 because of the success of Reliance Jio.

Summary

Reliance Jio offers a 15 percent discount on AirAisa domestic and international flight bookings to its users. Besides, the company is also offering international calls starting from INR 3 per minute.

RIL’s Dahej Petrochemical Expansion Project Receives a Green Nod

April 7, 2017

Mukesh Ambani led Reliance Industries Limited (RIL) has been given the environment clearance for debottlenecking and expanding its petrochemical plant in Dahej, Gujarat at an expense of INR 13,250 crore.

Green nod to RIL’s Dahej project

RIL’s Dahej petrochemical facility is located in the Bharuch district of Gujarat. Apart from meeting India’s demand-supply gap of petrochemicals, the company aims to expand the facility in view of their regular supply of feedstock, sufficient supply of Shale gas ethane from the United States (US), and change in the government’s policy to prioritize domestic supply over industrial sector. A senior government official stated that on the basis of Expert Appraisal Committee (Industry)’s recommendations, RIL’s expansion project has been given environmental clearance by the Environment Ministry on 3rd April 2017. He added that the expansion project will be carried out within the existing plant area of 700 hectares.

The expansion will cost around INR 13,250 crore. Apart from this, a budget of INR 400 crore will be kept aside to conserve and protect the environment.

The power required for the proposed expansion project will be generated from the existing captive power plant. The fuel utilized for the Dahej petrochemical facility expansion project will largely be ethane, off gas, and lean gas. As per the proposal, RIL’s Dahej petrochemical facility currently utilizes a mixture of propane and ethane to make downstream products and by-products.

Due to the availability of Shale gas that is imported from the US, RIL’s Dahej petrochemical facility intends to modify its feedstock ratio of ethane and propane in the gas cracker plant. This modification in feedstock mixture will lead to a higher production of ethylene.

RIL also proposed to set up new plants such as Poly Vinyl Chloride (PVC), Chlorinated Poly Vinyl Chloride (CPVC), Vinyl Chloride Monomer (VCM), and a dedicated Ethane storage tank.

Mukesh Ambani’s interview with Rajdeep Sardesai 

RIL Chairman Mukesh Ambani had a candid interview with journalist Rajdeep Sardesai. In the interview, Mr. Ambani said that if he had the enthusiasm as infectious as that of the current generation, RIL would be ten times bigger than what it is today. He praised the young generation and said that they are aspirational.

He believes that for the youth of today, nothing is impossible.  He added that young individuals strive to find problems and solve them rather than complaining, unlike his generation.

When asked about his hobbies and if quarterly results kept him occupied, Mukesh Ambani said that he does not think much about quarterly results. He is an avid reader and visual media keeps his mind focused.

Mukesh Ambani also shared that the first thing he does in the morning is praying. He loves nature and would like to take a few days off completely unconnected in nature. Recalling the old days, Mr. Ambani said that he still regularly visits Mumbai’s Cafe Mysore, which was his favorite food joint during his college days.

Summary

RIL has received a green nod for the Dahej petrochemical facility expansion project. In an interview with Rajdeep Sardesai, Mukesh Ambani praised the youth of today.