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Monday, August 3, 2009

RIL Artificially Keeping Gas Production Low: Anil Ambani

Launching a fresh attack on Reliance Industries (RIL), which is involved in a bitter legal tussle with Reliance Natural Resources (RNRL), ADAG Chairman Anil Ambani said RIL was artificially keeping gas production low at the KG basin.

I welcome Petroleum Minister Murli Deora’s remark on the gas allocation for the Dadri project,” Ambani, speaking at the group's conference call, said. Earlier in the day, the minister had said RIL’s D6 gas would be allocated to RNRL's Dadri plant as and when it started operations. “Our first priority will be to supply gas to existing power plants. No gas is being allocated to any power plant which are not operational,” Deora had said.

“I am, however, surprised that the Oil Minister is saying it would take a year to ramp up production [at KG basin],” Ambani said, pointing out that the basin produced 31 million cubic metres of gas as of today, something that was being purposely kept low by RIL to create a shortage for higher rate. “The Dadri plant is not operational due RIL’s malafide actions,” he said, and outlined that the project would have a capacity of 8,000 megawatt and an outlay of Rs 30,000 crore.

Ambani added that he would request the Comptroller and Auditor General (CAG) and the Central Vigilance Commission (CVC) to review RIL’s claims about capital expenditure. RIL’s capex for the KG basin stands at Rs 45,000 crore.

source: MC

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