This agreement envisages an investment of Rs 25,000 crore by subscribing to the units to be issued to it by Tower Infrastructure Trust.

Reliance Industries arm inks pact with Brookfield for investment of Rs 25215 crore
Money Telecom Tuesday, December 17, 2019 - 16:25

Reliance Industrial Investments and Holdings Limited, (RIIHL) has been the custodian of the tower infrastructure built by Reliance Jio. Now this company has entered into an agreement with an infrastructure management company Brookfield Infrastructure Partners LP. This agreement envisages an investment of Rs 25,000 crore by Brookfield by subscribing to the units to be issued to it by Tower Infrastructure Trust.

Post this investment, the Trust will be the 100% owner of Reliance Jio lnfratel Private Limited (RJIPL). RJIPL now owns 1,30,000 telecom towers and has plans to increase it to 1,75,000. Reliance Jio which runs the telecom business of the group will be the anchor tenant of the tower infrastructure for operating its business. The agreement in this respect will run for 30 years.

With this arrangement, the management of the tower infrastructure throughout the country has been left to Brookfield. That leaves Reliance to focus on providing the telecom and allied services to its customers. Mukesh Ambani, Chairman of Reliance Industries has issued a statement welcoming Brookfield on board in its telecom business.

The RIL Chairman has pointed out that this agreement and investment by the Canadian company proves the confidence investors have in the future of digital business in India.

RIL also announced that BP and Reliance Industries Limited signed a definitive agreement relating to the formation of their new Indian fuels and mobility joint venture.

The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals. The new venture, a further development of RIL and BP’s longstanding partnership, will include an India-wide fuels retail service station network and aviation fuel marketing business.

The venture expects to expand from RIL’s current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to up to 5,500 retail sites and 45 aviation fuel stations over the next five years.

The retail network will operate under the Jio-BP brand and the company said that it brings together Reliance’s extensive access and connection to consumers through its Jio digital platform and BP’s deep experience in fuel retailing around the world. The joint venture will seek to offer Indian consumers high-quality differentiated fuels, convenience and services. Castrol lubricants will also be available across the venture’s network.

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