Anil Ambani seeks review of RIL gas sale rejection | india | Hindustan Times
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Anil Ambani seeks review of RIL gas sale rejection

india Updated: Aug 03, 2006 16:07 IST
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Reliance Natural Resources Ltd Chairman Anil Ambani is on Thursday understood to have sought a review of the government's decision, rejecting the sale of natural gas by RIL to it, saying the $2.34 per mBtu price was the same quoted by the seller in a NTPC tender.

Ambani, who met senior Petroleum Ministry officials including Secretary MS Srinivasan to make a case for review of the last week's decision, said that the government estimate of revenue losses due to the sale was only "notional," sources in the know said.

However, government officials are believed to have told Ambani that the gas price has a direct bearing on government revenues and it cannot allow "a deal between two brothers arrived on the sidelines of a demerger agreement to be passed on as a price arrived at arms-length basis."

Sources said the officials also told Ambani that the NTPC price mentioned by RNRL has never come to the ministry for approval and to say that, that price could apply for all gas from RIL's K-G basin field would be incorrect.

Besides raising the gas sourcing issue, Ambani is also believed to have sought the ministry's intervention in allotment of Coal Bed Methane blocks, industry sources said.

Anil Ambani group firms Reliance Natural Resources Ltd and Reliance Energy Ltd, along with their consortium partner Geopetro of France, were being allotted four CBM blocks but they contend that they have won two more blocks.

The consortium had bid for all ten CBM blocks, bidding for which closed on June 30.

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