The Telegraph
Since 1st March, 1999
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Fresh dose of capital funding

Mumbai, April 23: Reliance Industries Ltd has planned a capital expenditure of Rs 7,000 crore for 2003-04 for its various businesses, including oil and gas, refining, infocomm and petrochemicals.

“Oil and gas development will get a major share of Rs 2,500 crore while Rs 500 crore will be spent on exploration this year as the company intends to step up gas development in the Krishna-Godavari basin,” Anil Ambani said.

He said Rs 1,500 crore would be spent on the infocomm venture.

“In less than 100 days, we have one million customers which is more than 50 per cent of the incremental mobile subscriber base in the country,” Ambani said.

The company, he said, in the coming days will introduce new schemes like pre-paid CDMA services which will be very competitive and targetted at a larger market. It will also bring in newer range of handsets by May.

Reliance Infocomm president Prakash Bajpai said the expenditure till March has been around Rs 9,000 crore and an equal amount would be spent over the next two to three years.

“We expect to achieve breakeven in a year or so” he said.

Ambani said on a standalone basis, Reliance Infocomm was on a strong footing (financially).

About the business, Bajpai said they plan to have the enterprise netway revolution operational through fibre optic in 194 cities during the second half of 2003 even as it is to shortly launch pre-paid service.

Bajpai said the interconnect agreements with BSNL and MTNL and all leading GSM operators have been signed.

The company plans to have 254 webworld stores in 111 cities within next few weeks as against the present strength of 76 in 25 cities. Phone stores would be enhanced from 100 to 700 shortly.

The service revenue from the GSM business has been Rs 375 crore and cash profit of Rs 122 crore. It also has a subscriber base of 5.45 lakh.

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