INDIA BUSINESS WORLD - AUGUST 2006
THE MONTH THAT WAS...

ANIL GOES AT GOVT, MUKESH

THE GLOVES are off, once again. For the first time after the petroleum ministry rejected the RIL-RNRL gas deal, ADAG chairman Anil Ambani has openly lashed out against the government and Mukesh Ambani-run Reliance Industries. Anil Ambani claimed that gas supply was the only issue holding up the 8,000 mw gas-based power plant at Dadri, and that RIL was deliberately creating hurdles for the project.

Emphasising that the Dadri power project was necessary to meet critical power needs of Punjab, Haryana, Delhi, Uttar Pradesh and Rajasthan, Mr Ambani said, ”Gas supply is the only issue holding up the project — and RIL is deliberately creating hurdles... Rejection of RIL-RNRL gas price by ministry of petroleum is premature and unfortunate. The ministry should have referred the gas contract to an expert committee. RNRL's contract with RIL is fully compliant...(it) mirrors RIL-NTPC deal arrived through international competitive bidding, and is (at) arm's length.”

Mr Ambani said the gas supply arrangement was approved by boards of both the companies in 2004. “RILRNRL gas supply arrangement is not part of the family settlement of 2005. It is a corporate contract, involving the future of 20 lakh shareholders,” he said.