Mukesh Ambani, Chairman of Reliance Industries Ltd (RIL), on Friday said that the company would look forward for a constructive cooperation with younger brother Anil Ambani's ADA Group (ADAG).
“As and when the power plants of ADAG are ready to receive gas, we would commence supplies to them subject to government granting allocations to these plants in the same manner as we do to all other plants to which the government has allocated gas from the KG-D6 gas field. With this legal dispute behind us, we look forward to a harmonious and constructive relationship with ADAG,” said Mukesh Ambani while addressing the 36th annual general meeting of Reliance Industries here.
One of the important developments in these seven months (since the last AGM) has been the Supreme Court verdict in May 2010, on the oil and gas allocation and pricing issues with ADAG.
“The Supreme Court upheld, in most parts, the stand of Reliance Industries,” Mr. Ambani added.
“It has always been our position that we are, and continue to be, governed by the provisions of the production sharing contract (PSC) in all respects of the petroleum operations carried out by us. We have also been fully conscious that the Central Government has more than a significant say in these operations.”
Mr. Ambani also said that RIL would tap more opportunities in the power sector. “For Reliance, power business is a natural and synergistic extension of our energy portfolio. Therefore, I am happy to inform you about a game-changing development since our last annual general meeting.”
Reliance and ADAG have annulled the earlier non-compete agreement and have signed a new non-compete agreement. This new agreement opens up the full range of power business for Reliance, except non-captive gas-based power plants until 2022.
This paves the way for Reliance to participate in the whole value chain of the power business, spanning generation, transmission and distribution.
“Reliance is ready to seize the prospect of transforming the Indian electricity landscape.
“We see an unbounded opportunity in this space. We are drawing up specific plans for mega-investment in this sector with clean coal-based power generation projects, hydel projects and also in nuclear power as and when it is opened up.”
RIL would also focus on the alternative energy domain, with priority on solar power. Reliance executed a 1 MW roof-top project at Thyagaraja Stadium for the Commonwealth Games in New Delhi. “Power business will be one of the growth engines for Reliance,” Mr. Ambani added.
