RIL-RNRL battle shifts to claiming damages on Dadri Proj

2523 Investors following Reliance En V. Share this News with them.

0

Like this story, share it with millions of investors on M3

RIL-RNRL battle shifts to claiming damages on Dadri Proj

Five years ago, Reliance Energy embarked on a plan to build a gas-based Dadri power plant in Uttar Pradesh. When the Ambani Brothers split, Mukesh Ambani was to give 28 mmscmd gas at 2.34 dollars per mmbtu to Reliance Energy, to run the power project. Now the debate in court has shifted from gas supply to Dadri to claiming damages.

Post your opinion here

 

0

Tweet

Share on Tumblr

The Ambani brothers have been battling out in the Bombay High Court over gas supply from the KG basin, gas that could have fired the 7,480 Mega Watt Dadri power project. CNBC-TV18's Katya Naidu reports.

Five years ago, Reliance Energy embarked on a plan to build a gas-based Dadri power plant in Uttar Pradesh.  When the Ambani Brothers split, Mukesh Ambani was to give 28 mmscmd gas at 2.34 dollars per mmbtu to Reliance Energy, to run the power project. This gas allocation has been under dispute at the Bombay High Court for the last two years. At the same time, nothing much has happened on the Dadri construction front.

RIL counsel Harish Salve argued in Court that the Dadri power project has not progressed while production of gas at KG basin is about to start next month. The counsel also said that the Rs 20,000 crore Dadri power project has not reached a financial closure. That's not all, Salve adds that a PIL is pending in Allahabad High Court over the land acquisition and that the bids for equipment supply have not even been called so far.

In defence, Anil Ambani's RNRL in an affidavit said that over 2,200 acres of land is in possession and that environmental clearances have been obtained, mega project status has also been given from the ministry of power.  Bidding for procurement and construction had started but the contracts have not been concluded due to lack of fuel supply.

Now the debate in court has shifted from gas supply to Dadri to claiming damages. RNRL wants damages but RIL is in no mood to relent. The battle continues.