Reliance to make Capital Contribution of $50 Million in Breakthrough Energy Ventures
By: Ashwathy Nair
- The investment of $50 million constitutes 5.75 % of the size of the fund anticipated at present.
- An investment of the funds by BEV will be raised from the investors to support innovation in clean energy solutions.
- The transaction is pending for approval from Reserve Bank of India (RBI).
Reliance Industries Limited (RIL) led by Mukesh Ambani will be investing up to $50 million in Breakthrough Energy Ventures IILP.
The Breakthrough Energy is newly incorporated under the Delaware state laws. The capital contribution will be done in tranches over the next 8-10 years and it will be for a limited partnership with the US-based company.
In a statement, RIL stated that “The capital contribution commitment of 50 million US$ sets up 5.75 per cent of the size of the fund that is contemplated at present. The investment that is being talked about will be made in tranches over the next 8-10 years”.
As per the agreement, Breakthrough Energy will be investing in clean energy solutions with the funds that are raised from the investors to support innovation. It is being expected to provide good returns to the investors.
Nevertheless, the agreement between Reliance and Breakthrough Energy Projects has been reached and the deal is still pending for approval by the Reserve Bank of India. Further, Reliance has informed about the investment that, it does not collapse within related-party transactions and none of the promoters from RIL, or group companies or promoter group are having any concern about the transaction.
In order to set up Breakthrough Energy Ventures, Mukesh Ambani in December 2019, had joined hands with Jack Ma, Jeff Bezos, and Bill Gates. The deal was signed up for $1 billion to fight climate change through innovations in clean energy.
“For India, the consequences of these efforts will have a considerable significance and are estimated to be beneficial to mankind as a whole and to deliver investors with good returns as well.”