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Wednesday, Jun 05, 2002

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RIL gives Rs 1,490.84-cr cheque -- Mukesh to head IPCL

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MUMBAI, June 4

SPECULATION on IPCL chairmanship was put to an end today after Reliance Industries Ltd announced that Mr Mukesh Ambani would head the newly acquired company.

The IPCL board will have a total 12 directors with six Reliance Industries Ltd (RIL) nominees and two Government representatives. The company will have four independent directors, a news release said.

The six RIL directors include Mr Nikhil Meswani, Mr K.G. Ramanathan, Mr K.P. Nanavaty and Mr Anand Jain. Mr S.K. Anand, currently IPCL's Director (Operations), has been re-nominated as whole-time director, the release said.

RIL, which signed the shareholders' agreement and other documents today, plans to restructure IPCL debts in order to reduce financial costs. It also planned to optimise IPCL's sales and distribution infrastructure, the release said.

In the medium to long term, the merged petrochemical giant is looking at feedstock integration and increasing capacities through "low-cost de-bottlenecking," the release said.

Our New Delhi Bureau reports: RIL gave a cheque for Rs 1,490.84 crore to the Union Government on Tuesday for acquiring a controlling stake of 26 per cent in Indian Petrochemicals Corporation Ltd (IPCL) at Rs 231 per share.

As per the shareholders agreement, Reliance cannot sell or transfer either directly or indirectly any shares purchased from the Government to any person for a period of three years.

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