Reliance Industries to supply natural gas to ADAG plants: Mukesh Ambani

Mangalore Today News Network

Mumbai, June 16: Reliance Industries, India’s most valuable company, on Friday announced multi-billion dollar investment plans in the power sector and said that it will supply natural gas to Anil Ambani Group’s power plants as and when they are ready.

RIL Chairman and managing director Mukesh Ambani said the company was ready for a "big surge forward" and will use its strong finances for "inorganic" growth and new ventures including expansion of capacity to produce polyester.

Addressing company shareholders exactly five years to the day when he and his brother Anil split the Reliance empire created by their father Dhirubhai Ambani, Mukesh signalled his desire to end the feud with his younger sibling Anil.

"With legal dispute (over supply and pricing of natural gas from RIL’s Krishna Godavari basin fields to Anil Ambani Group’s power plants) behind us, we look forward to a harmonious and constructive relationship with Anil Dhirubhai Ambani Group (ADAG)," he said at the meeting, which contrary to speculation was not attended by Anil Ambani.

RIL, he said, was ready to supply gas to ADAG’s power plants including the proposed 7,800 MW at Dadri near Delhi, as and when they are ready to receive the fuel. The supplies would, however, be subject to the government allocating gas to ADAG plants like it has done for all of the over 60 million cubic meters per day of output from KG-D6 fields.

"As and when the power plants of ADAG are ready to receive gas, we would commence supplies to them subject to government granting allocation...," he said.

Within weeks of the decision by the world’s richest siblings to scrap a 2006 accord that barred them from expanding into each other’s businesses, RIL said it has planned "mega investment" in thermal, hydel and nuclear power generation.

The company has already forayed into telecom sector, which along with power, was hitherto the reserve of Anil Ambani under the 2006 non-compete accord.

"We are ready to bring into full play our investment mobilisation capabilities, as well as our superior project execution capabilities, into a sector that is crying out for transformational mega initiatives," he said.

While Ambani did not put a figure to the investment, sources in know said RIL may be planning USD 10 billion spending, including on bidding for the government’s planned ultra mega power projects in Orissa and Chhattisgarh.

"We are drawing up specific plans for mega investments in this (power) sector with clean coal-based power generation projects, hydel projects and also in nuclear power as and when it is opened up," he said.