Reliance Infrastructure Limited has announced the establishment of a new wholly owned subsidiary, Reliance Jai Properties Private Limited (RJPPL), marking its strategic expansion into the real estate sector. The incorporation of RJPPL was officially recorded on August 12, 2024, as per a filing with the stock exchange.
The subsidiary was formed with an authorized and paid-up share capital of ₹1,00,000, divided into 10,000 equity shares at ₹10 each. Reliance Jai Properties will focus on various aspects of the real estate market, including the acquisition, sale, lease, and development of properties.
This development aligns with Reliance Infrastructure’s broader strategy to diversify its business interests and leverage growth opportunities within the burgeoning real estate sector. This sector has seen considerable expansion due to urbanization, increasing income levels, and government policies aimed at enhancing housing and commercial infrastructure.
The Indian government’s Pradhan Mantri Awas Yojana (PMAY) aims to construct 20 million affordable houses by 2022, with approximately 11.4 million houses sanctioned and 9.71 million completed as of 2023. Additionally, the government has allocated ₹48,000 crore for the development of 100 smart cities. As of 2023, over 7,900 projects valued at ₹1.93 lakh crore have been tendered, with more than 4,700 projects worth ₹93,500 crore completed.
In infrastructure, Roads and Highways receive the largest investment, followed by Railways and Urban Public Transport. Ambitious targets include developing a 200,000-kilometer national highway network by 2025, expanding airports to 220, operationalizing 23 waterways by 2030, and establishing 35 Multi-Modal Logistics Parks (MMLPs). The budget for infrastructure-related ministries has risen from approximately ₹3.7 lakh crore in FY23 to ₹5 lakh crore in FY24, underscoring significant investment opportunities for the private sector.
Reliance Infrastructure’s foray into real estate through Reliance Jai Properties underscores its commitment to tapping into these growth opportunities and enhancing its revenue streams.
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