Deora to clarify Govt's stand on Ambani gas row

New Delhi: The battle between brothers Mukesh Ambani and Anil over the Krishna-Godavari Basin gas reserves has reached Parliament.

Petroleum Minister Murli Deora will clarify Centre’s stand on the issue on Monday even as the Left Front has been demanding that the government takeover of marketing and distribution of Krishna-Godavari Basin gas that is to be supplied to Anil Ambani's proposed power plant at Dadri in Uttar Pradesh.

Deora is likely to inform Parliament about the decision of an Empowered Group of Ministers (EGoM) on Anil Ambani group firm Reliance Natural Resources Limited’s claim of first right over 28 million standard cubic meters per day of gas from RIL and the policy about fuel supply to future power projects.

The statement is understood to have been vetted at a meeting called by Finance Minister Pranab Mukherjee on Friday evening that was also attended by Union Law Minister M Veerappa Moily, government counsel Mohan Parasaran and top officials of the Ministries of Petroleum and Law.

Moily had hit out at Anil on Friday, saying it was “uncharitable” on the part of some people to have accused Deora of siding with RIL.

The Samajwadi Party MPs, led by their President Mulayam Singh Yadav, had demanded Deora’s resignation, while accusing the Centre of stalling the 7,800-megawatt power plant, about 50 km from the national capital.

Meanwhile, Anil Ambani on Sunday cautioned the government that National Thremal Power Corporation (NTPC) would lose up to Rs 30,000 crore if the fuel was not supplied by RIL at the committed rate of $2.34 per mmbtu.

Offering to clarify that RNRL’s position was in no way against the interests of NTPC, Anil sought a meeting with Union Power Minister Sushil Kumar Shinde and said, "We would be delighted if NTPC, a navratna, gets its rightful share of 12 mmscmd of gas for 17 years at a price of $2.34, which was discovered through open transparent international competitive bidding in 2004."

Even the Samajwadi Party has been pressurising the Centre and accusing the Petroleum Minister of bias.

Samajwadi Party MPs raised the Ambani gas row issue in Lok Sabha on July 29 after Anil accused the Petroleum Ministry of siding with Mukesh Ambani-led Reliance Industries Limited.

The Ambani gas dispute:

• The main issue is about pricing and distribution of gas being produced by Mukesh Ambani RIL D6 Gas Block in Krishna-Godavari region.
• Anil Ambani has been saying his firm should get gas at $2.34/unit as agreed when the brothers parted.
• The Union Government wants price to be fixed at $4.20 per unit.
• On June 15, Bombay High Court ruled in favour of Anil's RNRL.
• On July 4, RIL filed a petition in Supreme Court, seeking stay on earlier order.
• On July 18 Union Government filed petition to nullify Ambani family MoU.
• On July 28, Anil Ambani alleged that Petroleum Minister was helping Mukesh Ambani.

(With inputs from PTI)