RIL gas for power generation

Mumbai, Mar 6 (UNI) Chairman of the Reliance-Anil Dhirubhai Ambani Group (ADAG) Anil Ambani today said supply of gas from the Mukesh Ambani-controlled Reliance Industries (RIL) will be utilised for power generation by Reliance Energy (REL) and not for trading.

'' We have no intention to undertake trading of gas and oil to be supplied by RIL,'' he said during an interaction with media persons here this evening.

'' Trading in gas is a remote possibility when perhaps REL does not have any power project or there is surplus power available in the country,'' he said when asked if he intends to getting into trading of gas supplied by RIL.

He said RIL is expecting 40 million cubic metres of gas in the Krishna-Godawri basin, of which it is to supply 28 million cubic metres to National Thermal Power Corporation and the remaining 12 million cubic metres ADAG's Reliance Natural Resources (RNRL) for supply to Reliance Energy on a competitive bidding basis. In case the RIL-NTPC contract does not come through, he said the entire output of gas should be given to RNRL in the interest of the nation as well as shareholders.

On the differences between the Mukesh and Anil groups in respect of supply of gas and other cash payments, he said ''we have communicated to RIL certain deviations from the original agreement and these issues will be addressed by March 31, 2006.'' '' The issues are also a part of non-compete agreements between RIL and ourselves and we will get it resolved by this month-end.'' Anil said RNRL would also explore the possibility of getting into mining of coal and minerals, if and when the sectors are opened up.

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