Anil Ambani, RIL exec director call on Deora

Billionaire Anil Ambani today called on Petroleum Minister Murli Deora, apparently to discuss allocation of natural gas to his group’s power plants, amid reports that the government could consider allocation of gas only six months prior to the commissioning of projects.

It is Ambani’s second meeting with Deora since the May 7 Supreme Court verdict denying his group firm, RNRL, cheap gas from elder brother Mukesh’s Reliance Industries (RIL).

RIL Executive Director P M S Prasad also had a brief meeting with Deora before Anil came calling. Mukesh Ambani had, at RIL’s AGM last week said gas would be given to Anil’s group as and when its projects are ready to receive and according to the government’s approval.

Ambani refused to take questions from the media on his 30-minute meeting with Deora. Oil Secretary S Sundareshan was also present.

Deora, too, declined comments, saying: “I have nothing to speak on this (meeting). I have known (Anil) for many years and he just came to see me, nothing more.”

Prasad, too, did not take questions on his visit.

The Supreme Court had on May 7 ruled that the government alone had the right to approve the price of the gas produced from fields such as KG-D6 of RIL and fix its users.

It had asked RIL and Anil Ambani Group firm RNRL to begin renegotiation on a gas supply contract keeping the government approved price of $4.2 per mBtu and its Gas Utilisation Policy in six weeks and conclude it in the next eight weeks.

Officials in the ministry were tight-lipped on the agenda of Anil Ambani’s visit and stated that gas allocations will be done strictly in line with approved policy and subject to availability.

The Gas Utilization Policy, they said, does not provide for reservation of the fuel for anyone and allocation of the fuel to new plants, including those of Anil Ambani Group firms, would be considered when they are ready to start operation.

“We have in the past been accused of being in pockets of one individual and now we don’t want to be accused of being the pockets of the other,” an official said, apparently referring to allegations by RNRL counsel Ram Jethmalani in court that the oil ministry was in the pocket of Mukesh Ambani.