Reliance Industries Limited (RIL) has decided to purchase 50% stake in Rewas port connectivity project of Indian Railways.

The company would invest Rs 700 crore in the 25-km railway link between Pen station (40 km from Mumbai) and Rewas port.

Rail Vikas Nigam Limited (RVNL) is expected to clear the project on Friday (May 23).

A senior Rail Bhawan representative stated that the joint venture (JV) deal for the port connectivity project would be signed between RVNL and RIL. The port is near to the Navi Mumbai Special Economic Zone (SEZ) promoted by RIL chairman Mukesh Ambani and associate Anand Jain.

The JV would be in the form of a special purpose vehicle (SPV).

RIL would be refunded Rs 350 crore, 50% of the project cost, through freight discount over a period of 10 years.

Reliance Logistics Investment, a Reliance group company, together with Jai Corp, a company belonging to Mr. Jain, holds the majority stake of 51% stake in Rewas Port.

At 11:25 am, the shares of Reliance Industries lost 1.6% at Rs 2625.05 on the Bombay Stock Exchange (BSE).