The Hindu : National : RIL creating hurdles for Dadri project: Anil Ambani

Online edition of India's National Newspaper
Monday, Aug 07, 2006

National

National

RIL creating hurdles for Dadri project: Anil Ambani

Special Correspondent

LUCKNOW: Terming the rejection of the gas contract arrangement between Reliance Industries Limited and Reliance Natural Resource Limited (RNRL) for the Dadri power project as `premature' and `unfortunate', Chairman of Reliance Energy Limited Anil Ambani said here on Sunday that it should have been referred to the expert committee.

In a statement, he said Reliance Energy was fully committed to building the 8,000 mw [the world's largest] gas-based power project at Dadri. Mr. Ambani said 4,000 mw power would be given to Uttar Pradesh, whose industrial development he was fully committed to. The Dadri project was important for the country as well, he added.

Gas supply was the only issue delaying the project. Mr. Ambani accused RIL (owned by Mukesh Ambani) of `deliberately creating hurdles.'

The RNRL gas contract with RIL was fully compliant with the production-sharing contract of the Ministry of Petroleum and mirrored the RIL-National Thermal Power Corporation deal arrived through international competitive bidding.

The Reliance Energy chief smelt a rat in the RIL sending the gas contract arrangement with RNRL only for approval to the Ministry of Petroleum whereas it had entered into a similar arrangement with NTPC.

Mr. Ambani denied that the RIL-RNRL gas supply arrangement for Dadri was part of the family settlement of 2005, and said the agreement was approved by the boards of both the companies in 2004. He said the gas contract was a corporate one and involved the future of 20 lakh shareholders.

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