The Hindu : New Delhi News : Ministry to intervene in Ambanis’ row

Online edition of India's National Newspaper
Friday, Sep 26, 2008
ePaper | Mobile/PDA Version

New Delhi

New Delhi

Ministry to intervene in Ambanis’ row

Sujay Mehdudia

NEW DELHI: A day after Anil Ambani accused the Petroleum Ministry of siding with his elder brother, Mukesh, it decided to intervene in the ongoing RIL-RNRL litigation to get the stay on gas sale vacated.

Talking to newsmen here on Thursday, Petroleum Secretary R.S. Pandey said the decision was taken on the advice of the Attorney-General and the Law Ministry, which saw the government as an “affected party.” “The government has requested the Bombay High Court to lift the injunction on D6 gas sales.”

Mr. Anil Ambani’s Reliance Natural Resources Ltd. claims right over 28 million standard cubic metres of gas per day from D6 in keeping with a family agreement that split the Dhirubhai Ambani empire between the brothers. RNRL’s claim is disputed by Reliance Industries.

The High Court, on an RNRL plea, stayed sale of gas from D6 to anyone other than this company and the state utility, National Thermal Power Corporation, to which RIL had in 2004 bid to sell 12 mmscmd gas at $ 2.34 per million British thermal unit.

Addressing the RNRL shareholders in Mumbai on Tuesday, Mr. Anil Ambani said the eleventh-hour intervention by the Ministry was to help a private player. But Mr. Pandey said: “Our efforts are to get the injunction vacated to help production start from D6 block.”

RIL will not be able to start gas production unless the stay is lifted, as the fuel cannot be stored. Output from D6 holds the key to bridging the gas deficit in the country.

D6 will almost double the nation’s gas availability of 91 mmscmd and will help meet half the deficit.

Mr. Pandey said gas production from Reliance Industries’ D6 block was likely to begin by the year-end.

Printer friendly page
Send this article to Friends by E-Mail

New Delhi

News Update

Stories in this Section