'No pact with RNRL': Reliance Industries Ltd
15 Jan 2009
Mukesh Ambani's Reliance Industries has denied any pact with Anil Ambani Group's Reliance Natural Resources Ltd (RNRL) for the sale of natural gas from the Krishna-Godavari basin off the Andhra Pradesh coast.
Senior counsel for Reliance Industries Harish Salve told the Bombay High Court that a memorandum of understanding was entered into with another Anil Ambani group company, Reliance Energy, for the Dadri power project in Uttar Pradesh and none with RNRL.
According to Salve, the 28 million standard cubic metres per day (mmscmd) of gas is specific for Reliance Energy at NTPC price of $2.34.
Salve said under the draft supply agreement, 12 mmscmd of D6 gas would first go to NTPC. While Reliance Energy would get the next tranche of 28 mmscmd, the remaining 20 mmscmd would be used by RIL for its captive consumption.
Also owned by the Anil Ambani group, Reliance Energy is an electricity distribution utility, supplying power to the Mumbai suburbs amongst other things. Reliance Energy has an aggregate estimated revenues of Rs9,500 crore ($2.1 billion) and total assets of Rs10,700 crore.
Reliance Energy distributes more than 21 billion units of electricity to over 25 million consumers in Mumbai, Delhi, Orissa and Goa, across an area that spans 124,300 sq.kms. It generates 941 MW of electricity, through its power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.
