Canada-based Brookfield Asset Management’s India Infrastructure Trust. An InvIT is acquiring Reliance Industries Ltd’s (RIL’s) loss-making entity East-West Pipeline for ₹13,000 crore, RIL said on Thursday.
The InvIT will acquire 100% equity interest in Pipeline Infrastructure Private Limited (PIPL) which currently owns and operates the East-West Pipeline.
Following this acquisition by Brookfield. The existing pipeline usage agreement has been reworked and the reserved capacity reduced to 33 million metric standard cubic metres per day (MMSCMD) against the 56 MMSCMD. Additionally, any unutilized capacity payment by RIL will be the difference between the ₹500 crore a quarter and actual revenue earned by PIPL.
“RIL will continue to be entitled to transport gas, either by itself or of any customers, free of cost against any outstanding unutilized capacity payments,” the statement added.