In a move that would surprise and excite many telecom honchos , Reliance Jio announced a total CAPEX of 1.5 Lakh Crore. The companies group Chairman Mukesh Ambani made an announcement while reporting the highest operating profit for Reliance Insdustries in 8 years. According to group’s deputy CFO “Our capex in the reporting fiscal year stood at Rs 1.20 trillion and this will go up to Rs 1.5 trillion in the ongoing fiscal year. The money will be spent to complete the ongoing expansion projects at Jamnagar and the rollout of the telecom network.”
The announcement would push the oil major’s telecom initiative to the next level. According to the Deputy CFO 50,000 to 60,000 crore will be used to expand the Jamnagar refinery while 60,000 crore will be used for Reliance Jio and rest will be used for company’s retail arm. Around $150 million which is around 1,000 crore will be used for US shale gas operations
It is interesting to see that with a record decrease in crude oil price , Reliance industries has seen the highest increase in profit in eight years.