Pvt power cos concerned at RNRL getting gas at lower rates

After fertiliser firms, private power companies have voiced concerns over gas supplies from Reliance Industries' (RIL) KG-D6 fields being impacted if the fuel is diverted to an Anil Ambani Group firm Reliance Natural Resources (RNRL) at lower rates.

GMR Group, Torrent Power and GVK Industries have written separately to Petroleum Minister Murli Deora and Power Secretary HS Brahma, stating that the move would give unfair price advantage to ADAG and kill competition in the power sector.

The Bombay High Court had last month directed Mukesh Ambani-run RIL to sell 28 million standard cubic metres of gas per day (almost the same volume currently produced from KG-D6) to RNRL at $2.34 per mmBtu, which is 44 per cent lower than the rate set by the government.

Subsequent to this order, RNRL moved the Supreme Court, seeking to restrain RIL from selling gas to any other company other than itself.

"The price indicated in the order would benefit specific power generators (like those of Anil Ambani Group) and thereby making power generated by others non-competitive," Torrent Power said, adding "such an environment would discourage further investment by multiple players in the power sector".

GVK Vice-Chairman GV Sanjay Reddy said, "(The judgment) is in favour of one particular group which has been given inexplicable advantage to load the electricity market against all competition."