Reliance Industries Ltd is open to acquiring an additional five per cent stake in IPCL from the government even as it expects to generate cash flows of Rs 25,000 crore (Rs 250 billion) in the next 3-4 years enabling the company to pursue future growth plans.

"The government has decided to offload 34 per cent stake in IPCL through an initial public offering and we have the first right of refusal. The government has given us the right to take five per cent stake at a fair value and raise the shareholding to 51 per cent," Reliance vice-chairman Anil Ambani told newspersons in Mumbai on Thursday.

"If we decide not to buy it then the government can offload the 34 per cent stake through IPO," he said.

However, if the IPO does not go through, both parties would revert back to the original shareholders agreement with a put and call option, he added.

Ambani, while announcing the second quarter results, said RIL would also look at picking up "crude equity", particularly in locations nearer to India. The company already has 12 per cent equity in a Yemen block, which produces 90,000 barrels a day.

He said Reliance Infocomm, the group's subsidiary in telecom sector, has already achieved a cash breakeven and was likely to register profits in the first year itself.