Reliance to induct JV partner for fuel biz

India’s most valuable company, Reliance Industries (RIL), will induct a partner into a planned new venture that will house its loss-making fuel retail business, and state-owned Indian Oil Corporation (IOC) and the Indian unit of Anglo-Dutch Royal Dutch Shell are the frontrunners for the 50% stake it is willing to offer, a person familiar with the matter said. The company, which operates the world’s largest refining complex at Jamnagar in Gujarat, has no plans to completely exit fuel retailing in the country, but is, at the same time, keen to recoup some of its past losses, estimated to be several thousands of crores. “We want to look at options of a collaboration with existing market players,” RIL’s CEO for its oil and gas operations PMS Prasad told. The group recently invited bids from a raft of Indian and overseas companies, notably IOC, Shell India, BPCL and HPCL, and the person said it could consider even offering a majority stake of 51% to the partner. RIL has invested nearly $1.4 billion to date in the fuel retailing business and has built up a network of 1,432 petrol pumps across the country. Creating a separate company for this business and divesting a part of its equity in it could help RIL shift its accumulated losses from fuel retailing away from its books.