KG gas row...Anil Ambani ups the ante

In a speech lasting almost an hour-and-a-half, An emotionally charged Anil Ambani wasted no breath in taking on RIL and his estranged elder brother Mukesh Ambani during the annual general meeting (AGM) of Reliance Natural Resources Ltd. (RNRL). "What RIL has been communicating in the last few years is that it has no regard for its own solemn word, no time for values, no respect for the sanctity of contracts and, most of all, no morality in its headlong pursuit of corporate greed. The most important word for Shri Dhirubhai Ambani was trust and that word has, unfortunately, gone missing. The corporate greed of RIL is a stumbling block in the future of RNRL. "Over the past five years, I have made every possible effort to resolve the outstanding issues with RIL so that we can all focus on realizing our founder’s dream. But, unfortunately, without any success," he added.

He also launched a scathing attack on Petroleum Minister Murli Deora. "It is evident that the apparently biased stance commenced in 2006, coinciding with changes in the ministry. I am not casting aspersions on the integrity of individuals here - I am sure that they have good reasons for their stance," Anil Ambani said. Ambani was also scathing in his remarks about a government decision setting a price of US$4.20 per mmbtu of natural gas, claiming that the price should not be more than US$1.5.

The gas supply dispute between RIL and RNRL vitally affects public interest, RNRL said. The matter concerns power projects of national importance representing a capacity of 12,000 MW of power, and an investment of over Rs50bn, and affects the interests of over 10 million shareholders, it added. RNRL would like to have an early resolution of the matter expeditiously. The Supreme Court has been gracious to fix the September 1 for hearing preliminary aspects of the matter. RNRL counsel mentioned this matter before the Supreme Court on 30th July.

The apex court said that it will give a short date to expedite the decision pertaining to the KG basin gas dispute between RNRL and RIL. "The matter will be taken up on September 1. On that day we will give a short date for early decision in the case," said a bench headed by Chief Justice KG Balakrishnan. The court in its brief order said that it will list the matter on Sept. 1 for further directions.