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Home  » Business » Anil Ambani calls on Deora

Anil Ambani calls on Deora

Source: PTI
Last updated on: June 22, 2010 18:13 IST
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Anil AmbaniBillionaire Anil Ambani on Tuesday called on Oil Minister Murli Deora, apparently to discuss allocation of natural gas to his group's power plants, amid reports that government could consider allocation of gas only six months prior to commissioning of projects.

It is Ambani's second meeting with Deora since the May 7 Supreme Court verdict denying his group firm Reliance Natural Resources Limited cheap gas from elder brother Mukesh-run Reliance Industries Limited.

Incidentally, Reliance Industries executive director PMS Prasad also had a brief meeting with Deora before Anil came calling.

At RIL's AGM last week, Mukesh Ambani said that gas would be given to Anil's group as and when its projects are ready to receive and as per government's approval.
Ambani refused to take questions from media on his 30-minute meeting with Deora.
Oil secretary S Sundareshan was also present.

Deora too declined comments, saying: "I have nothing to speak on this (meeting). I have known (Anil) for many years and he just came to see me, nothing more."
Prasad, too, did not take questions on his visit.

The Supreme Court had on May 7 ruled that government alone had the right to approve the price of the gas produced from fields such as KG-D6 of Reliance Industries and fix its users.

It had asked RIL and Anil Ambani Group firm RNRL to begin renegotiation on a gas supply contract keeping the government approved price of $4.2 per mmBtu and its Gas Utilisation Policy in six weeks and conclude it in next eight weeks.

Officials in the ministry were tight-lipped on the agenda of Anil Ambani's visit and stated that gas allocations will be done strictly in line with approved policy and subject to availability.

The Gas Utilisation Policy, they said, does not provide for reservation of the fuel for anyone and alloation of the fuel to new plants including those of Anil Ambani Group firms would be considered when they are ready to start operation.

"We have in the past been accused being in pockets of one individual and now we don't want to be acussed of being the pockets of the other," an official said, apparently referring to allegations by RNRL counsel Ram Jethmalani in court that oil ministry was in the pocket of Mukesh Ambani.

There is a long queue of power plants, refineries and other industries for gas and it was not possible to break the line and make allocation to ADAG plants that will not be in a position to take gas before 2012, he said.

Sources in the ministry said the government may allocate natural gas to Anil Dhirubhai Ambani Group's proposed power plants -- be it the Dadri project in Uttar Pradesh, expansion of its Samalkot unit in Andhra Pradesh or any other greenfield project, only six months prior to their commissioning.

Image: Anil Ambani

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