Paswan questions EGoM on gas pricing of Dadri project by RIL

Lucknow, Sept 6 (UNI) While the ambitious Dadri power project of Anil Ambani group in Uttar Pradesh (UP) lies in a limbo for want of gas supply from Reliance Industries, a senior Union Minister has vehemently questioned the offer of gas price.

The UP government has gone on record saying the project would take off only after the gas supply was ensured to Anil Ambani owned Reliance Natural Resources Limited (RNRL) to execute the project by Reliance Energy Ltd (REL).

Meanwhile, the Union Minister of Chemicals and Fertilizers and Steel Ram Vilas Paswan has shot off a letter to his cabinet colleague Pranab Mukerjee, who is chairman of EGoM (Empowered Group of Ministers), in this regard seeking details on certain issues, which are likley to create an uncomfortable situation for Mukesh Ambani's RIL.

Mr Paswan, in his letter, has raised questions about the process of bidding, limited companies participating in bidding and the escalation in the actual cost of gas production. He said that earlier the RIL had offered 2.47 billion dollars for gas production and now they were increasing it to 8.84 billion dollars which was questionable as the increament being alomost three times compared to increase in production being two times.

According to high placed sources, the letter of Mr Paswan to Mr Mukerjee, sent few days ago, confirmed that the former was lobbying to provide cheaper gas to fertilizer industry, the issue has been getting complicated for the 10,000 MW Dadri project, considered to be the largest generation project in the world at one site, to take off.

''Of course, the state government is waiting for gas issue to be settled for commencement of gas-based power generation Dadri project but the wait cannot be indefinite and the provisions of the Memorandum of Understanding (MoU) would be studied in the light of this fact,'' Mr G B Pattnaik, Chairman UP Power Corporation Limited told UNI here.

The Dadri project was in thick of things ever since Anil Ambani was alloted the land for the project by the earlier Mulayam Singh Yadav government in the state. The issue of gas supply could not be settled after split in the Ambani clan and Mukesh Ambani's RIL was to supply gas to RNRL of Anil Amabani.

UNI