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Reliance Industries Ltd (RIL) today said with regard to the Scheme of Arrangement between RIL and its shareholders and creditors and Reliance Syngas Ltd (RSL) and its shareholders and creditors, and following the Mumbai bench of National Company Law Tribunal's direction, the company said in meetings will be held via video conference on March 9.
Giving further details, RIL said the meeting of secured creditors will be held at 10.30 am (IST) on March 9, while unsecured creditors and equity shareholders' meet will be held at11.45 am and 2 pm (IST).
The details such as the manner of casting votes through e-voting and attending the meeting through VC/OAVM have been set out in the notice of the respective meetings, RIL said.
An equity shareholder, whose name is recorded in the register of members or in the register of beneficial owners maintained by the depositories as on the cut-off date, i.e., Wednesday, March 2, 2022, only will be entitled to exercise voting rights on the resolution proposed in the notice and attend the meeting of the equity shareholders, the company further added.
Voting rights of equity shareholders will be in proportion to their shareholding in the paid-up equity share capital of the company as of March 2.
The voting rights of a secured creditor will be in proportion to the outstanding amount due by the company as of the cut-off date, i.e., Monday, January 31, 2022, RIL said. The voting rights of an “unsecured creditor" will be in proportion to the outstanding amount due by the company as of the cut-off date, i.e., Friday, December 31, 2021, it added.
Scheme of Arrangement
The NCLT on January 28, 2022, had directed the company that a meeting of the equity shareholders should be held for considering, and if thought fit, approving, the proposed Scheme of Arrangement between RIL and its shareholders and creditors and Reliance Syngas Limited, its shareholders and creditors.
The scheme provides for the transfer of the gasification undertaking from the company to the transferee company as a going concern on slump sale.
The gasification undertaking produces syngas to meet the energy requirements at Jamnagar as refinery off-gases, which earlier served as fuel were repurposed into feedstock for the Refinery Off Gas Cracker (ROGC). This enables the production of olefins at competitive capital and operating costs. Syngas as a fuel ensures the reliability of supply and helps reduce volatility in energy costs. Syngas is also used to produce hydrogen for consumption in the Jamnagar
refinery.
RIL targets to have a portfolio, which is fully recyclable, sustainable and net carbon zero. "This will be achieved by transitioning to high-value materials and chemicals with renewables as the source of meeting its energy requirements," RIL had told the NCLT.
It added that as RIL progressively transitions to renewables as its primary source of energy, more syngas will become available for up-gradation to high-value chemicals including C1 chemicals and hydrogen. "Further, carbon-di-oxide released during the process of producing hydrogen is highly concentrated and easy to capture, substantially reducing the cost of
carbon capture. Overall, these steps will help sharply reduce the carbon footprint of the Jamnagar complex," the company said.
It also said that repurposing the gasification assets will help use syngas as a reliable source of feedstock to produce these chemicals and cater to growing domestic demand, resulting in an attractive business opportunity.
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