i Develop Stocks Advisory

Reliance Infra to invest $7 bn for expansion Reliance Infrastructure Ltd(RIL), a power generator controlled by billionaire Anil Ambani, plans to invest $7 billion in the next three years to expand its engineering and construction business in India and acquire assets overseas. The company, formerly called Reliance Energy Ltd, will borrow as much as 8% of the funds, director Lalit Jalan said in an interview in Mumbai , without elaborating. ‘‘We’re looking for a good asset at a good price,’’ he said. chairman Ambani changed the company’s name in May to reflect the widened scope of its business to include roads and airports as India spends $500 billion to improve infrastructure by 2012. “Reliance, which started a Shanghai office last year, expects to unveil a venture in China in the next two months and aims to develop a global business,” Jalan said. ‘‘It sounds easy on paper but the proof of success only comes after projects are completed,’’ said Mahesh Patil, who helps manage $9 billion in debt and equity at Mumbai-based Birla Sun Life Asset Management. ‘‘This company is getting into too many projects. It may be plausible but it’s going to be a big, big challenge.’’ Reliance Infrastructure’s stock, the best-performer on India’s 30-share Sensitive Index last year, has declined 52% since the start of this year. The proposed investments will be separate from the $28 billion that its 45% owned unit Reliance Power, plans to spend on adding generation capacity in India in five years. Reliance Infrastructure’s total debt amounts to about 70% of the company’s equity.” It seeks to partner Chinese companies for a technology, services or production venture,” Jalan said, declining to give details.