Anil Ambani group can enter gas supply business, says REL

New Delhi, June 25 (UNI) The Anil Dhirubhai Ambani Group (ADAG) today said it can enter the city gas distribution business in Delhi and Mumbai without violating the demerger agreement, approved by Mukhesh Ambani-controlled Reliance Industries Limited.

''It is false to say that the ADAG cannot enter the city gas distribution business, as the demerger agreement of January 12, 2006, permits it,'' Reliance Energy Limited (REL) source told UNI.

Earlier, Mr Anil Ambani's accusation that the Reliance-Haryana SEZ violated the non-compete agreement between the two brothers, was dismissed by the RIL as a ''non-issue''.

The Mukesh Ambani-controlled RIL had said that after all, the ADAG was entering the gas distribution business, the area reserved for the elder brother.

The REL source said as per the demerger agreement, the ADAG can set up gas pipeline for captive supply of fuel to its power business. It can also enter into a joint venture or partnership with gas producer or participate in the Government of India process for acquisition of gas for its gas-to-power business.

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