Reliance Industries on Friday said the energy-to-retail conglomerate will be free of debt by March next year, using cash earned from selling stake in oil and gas fields to UK's BP Plc, on whom it is also pinning hopes for reviving sagging natural gas output at KG-D6 fields.
Reliance Chairman
Mukesh Ambani addressing shareholders here said India's largest listed firm plans to raise plastic manufacturing capacity and invest aggressively in its retail business by launching cash-and-carry, or wholesale, outlets.
On the company's broadband foray, he said Reliance was conceptualising its foray into broadband wireless services but did not live up to the market expectation of unfolding blueprint for entry into financial services and giving guidance on when the falling output at its crown-jewel eastern offshore KG-D6 fields will be arrested.
Ambani said BP will acquire "30 per cent participating interest in (Reliance's) 23 oil and gas blocks, including the currently producing KG-D6 block" for $7.2 billion (Rs 32,400 crore).
The transaction, plus about Rs 30,000 crore in cash flows that the company generates mostly from oil refining and gas business would help Reliance become debt free.
"Reliance will be completely debt free, net of cash balances within this year," he announced.
It had an outstanding debt of Rs 67,397 crore as on March 31, 2011 and cash and cash equivalent of Rs 42,393 crore.
Ambani said after government approval, Reliance and BP will "jointly assess" problems the KG-D6 fields that have seen output dip to about 48-49 million cubic metres per day from 61.5 mmcmd instead of rising to planned 69 mmcmd.
Reliance Industries Chairman Mukesh Ambani with his wife Nita Ambani (second from left), daughter Isha (right) and mother Kokilaben (left) during the company's 37th annual general meeting in Mumbai on Friday. 
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