Barclays Equity Research has recommended 'Overweight' on Reliance Industries (RIL) with target price unchanged at Rs 1,100 in its report.

Commenting on the investment rationale, Barclays said, ''Reliance's IGCC project will allow refinery off-gases, thus far used internally, to be fed into a USD 4.5 billion olefin complex. We expect cash costs for this cracker to be among the lowest third of global capacities, but a project on off-gas derived ethane has not been attempted on this scale before.

Uncertainties remain, therefore, even with Reliance's long term track record and experienced project partners. Yet the project is also robust in under several spread scenario with a base case USD 1.1 billion EBITDA and Rs14/sh EPS uplift - a key tailwind for our Overweight (OW). The Mar-16 start-up will be a key milestone.    

Yet such an off-gas based project is yet to be validatd at this scale with success also dependent on stabilization of the IGCC- also unprecedented in scale. Investor confidecemay build gradually, therfore. In the interim, ONGC (OW) is still our top pick.''

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