Ratings on Reliance Industries Ltd.

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 30, 2006 -- SINGAPORE (Standard & Poor's) Dec. 29, 2006--Standard & Poor's Ratings
Services said today it affirmed its long-term foreign and local currency
ratings on India's Reliance Industries Ltd. (Reliance) at 'BBB'. The
outlook is stable.


"The affirmation reflects Reliance's dominant competitive position, the
relatively stable medium term prospects for its core refining and
petrochemical businesses, and an overall moderate financial profile of the

company," said Standard & Poor's credit analyst Anshukant Taneja. The
ratings factor in the likelihood of timely completion of its ongoing
projects, specifically the new refinery at Jamnagar, India. The ratings are
also underpinned by the expectation that Reliance would pursue its noncore
businesses, specifically investments in the retail sector, in a modular
phased-out manner, as an accelerated investment strategy can weigh on the
company's overall credit profile.


"The ratings remain constrained by Reliance's exposure to highly cyclical

industries, large capital commitments in its refining, exploration and
production businesses, and uncertainties in developing its reportedly large
gas reserves," added Mr. Taneja.


Standard & Poor's views Reliance's Indian rupee (INR) 617 billion (US$13.5
billion) capital expenditure plan with caution, given potential softening
in the petrochemical cycle, reduced demand for refined petroleum products,
and uncertainties related to the company's upstream gas business.
Lower-than-expected cash flows for funding a part of the capital

expenditure could mean higher borrowings, which would weaken the company's
credit protection measures.


"Reliance's current financial position, strong liquidity, and high access
to financial resources do mitigate some of these risks," noted Mr. Taneja.


Reliance is India's largest private sector company. Its two main lines of
business are oil refining and petrochemicals production, accounting for
about 67% and 31% of revenue, respectively, for the fiscal year ended March
31 2006. Reliance had revenues of INR891 billion and net income from

continuing operations of INR90.6 billion in fiscal 2006.