Seeking to turn the tables on Anil Ambani group (ADAG), the Mukesh Ambani controlled Reliance Industries Ltd (RIL) — facing allegations of making super-normal profits — has accused the ADAG of trying to earn an astronomical Rs 350,000 crore as profit with plans to trade gas bought at below-market rates.
The group’s Reliance Natural Resources Ltd (RNRL) wants natural gas from RIL’s KG-D6 (Krishna-Godavari basin field) at preferential price of $ 2.34 per unit. It would supply the fuel to the group’s power firms at market rates, thus making Rs 21,000 crore profit a year for 17 years, RIL told the Supreme Court in its reply to a petition filed by RNRL.
RNRL had accused RIL of trying to make super-normal profit of Rs 50,000 crore by selling gas at a higher price.
RIL attached RNRL’s offer document for a GDR listing, which mentions that it would supply gas to affiliate power companies at prevailing market prices. “Such market prices may exceed the government-approved cap price of $4.20 per unit (for KG-D6 gas).”
In addition, RIL claimed the Anil group’s power company, which is setting up a plant at Dadri in Uttar Pradesh, would stand to make a windfall gain of Rs 70,000 crore. Citing the 2004 agreement between the UP government and Reliance Energy, RIL said the Dadri project would get a fixed cost tariff of Rs 1.25 per unit — double the industry norm for gas-based projects.