Along with ambassadorism, I hope he takes some burden off of Mumbai...

http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/RIL-may-shift-HQ-to-Jamnagar-retain-others-at-Nariman-Point/articleshow/5558749.cms

RIL may shift HQ to Jamnagar, retain others at Nariman Point


11 Feb 2010, 0709 hrs IST, Kausik Datta, ET Bureau

MUMBAI: Reliance Industries (RIL), the nation’s biggest company, is contemplating shifting its registered office to Jamnagar in Gujarat from Mumbai, which, if it happens, may deal a blow to the image of the nation’s financial capital, but ease its administrative burden.

A possible move to Gujarat, which is one of the most-favoured destinations of businessmen, including Ratan Tata, was discussed at the RIL board meeting on January 22 “informally”, a person familiar with the development said. It is not known when a decision would be taken on it. RIL declined comment.

Mumbai, the hub of commerce since the British days, has been losing sheen, as services sectors such as technology and telecom begun to get bigger in the national economy, while manufacturing industries such as textiles got crippled.

Soaring real estate prices and infrastructure bottlenecks are making the capital of Maharashtra unattractive. The recent war-of-words by politicians on who has the right over Mumbai, though may remain a bark than a bite, has caused unease for some.

The debate about shifting started much before the richest Indian, Mukesh Ambani, joined the issue on the claim on Mumbai by politicians such as Shiv Sena’s Bal Thackeray and crippling new rules for taxi drivers by chief minister Ashok Chavan. “We are all Indians first,” Ambani said on January 27. “Mumbai, Chennai and Delhi belong to all Indians. That is the reality.”

But RIL’s internal debate about shifting of the registered office may not be because of the one upmanship between political parties, but the need to have key staff closer to its 60-million tonne refineries, the largest single-location facilities in the world.

If it happens, it may not be the first time. The Ambanis had twice formed Reliance Petroleum with registered offices in Jamnagar to build refineries, which were later merged with RIL.

“Generally speaking, a company has to file its tax return either in the jurisdiction of its registered office or at the place where the dominance business is located,” said Sudhir Kapadia, partner, KPMG. “Many companies find it administratively convenient to get assessed on their taxable income at the main manufacturing centre, since the information may be available at that place.”

But Mr Ambani and the company may well retain their corporate offices in the prestigious Nariman Point of Mumbai. While top executives are located in the Maker Chambers-IV , its offices are spread all over, unlike a single building for companies such as Essar. Any move to Jamnagar could displace some of its 5,000-odd staff in Mumbai. It employs about 25,000 people.
Probably, some staff could prefer to move to a city like Jamnagar, as the company may create infrastructure for a luxurious life, unlike a Reliance
mostly-wretched one in Mumbai for middle-class salary earners who jostle for space in trains and even on platforms. Companies are preferring other cities with better infrastructure such as New Delhi which boasts of a swanky Metro and wide roads.

Around 44,000 new companies were registered in the NCR in the first nine months of the financial year, four times that of Maharashtra, according to data from the Registrar of Companies. What is Mumbai’s lose is a gain for Jamnagar . It may be a boon for propertyowners in the remote city, as any such move could trigger a surge in real estate prices, said a developer.

-----------------------------------------------------------------
Sunny Leone a true Canadian DESI now back in India !.