Reliance Industries hiving off gasification unit; here’s what brokerages says

Reliance Industries on Thursday announced hiving off its gasification unit in the Jamnagar complex and brokerages are positive of the move calling it the first step towards a transition to its new energy business.

Morgan Stanley says that the hiving off is a step towards monetizing synergies between its existing energy infrastructure and the new energy plants.

Reliance Industries will transfer its Jamnagar syngas project to a subsidiary it owns fully with a view to unlocking value, a company statement said. Used for energy production, syngas is a combination of hydrogen, carbon monoxide and some carbon dioxide that is typically manufactured by gasifying a solid hydrocarbon fuel.