Anil insists that Mukesh is â€کbarred' from power sector

Vol 11, PW 1 (17 May 07) People & Policy

Clearly angry, Anil does more than just complain about his brother’s furtive attempt to encroach on his territory - the power sector.

He forcefully calls on Maharashtra Chief Minister Deshmukh to reject Mukesh’s proposal, with a veiled threat thrown in. “The proposals discussed by the Chairman (Mukesh Ambani) of Reliance Industries with you during the course of yesterday’s (3rd April) meeting,â€‌ says Anil, “go far beyond the scope of business of Reliance Industries and its group entities agreed to by all the parties to the reorganisation.

â€‌ Anil explains forcefully that the power business of the whole Reliance group (before the split) “including generation, transmission and distribution and trading of electricity, came to be a part of (his) Reliance Anil Dhirubhai Ambani group (after the split).â€‌ Adds Anil: “We therefore request you to use your good offices to see that Reliance Industries supplies us the gas that it would have used for 1100-MW power generation and we hereby reiterate our willingness and readiness to set up the 1100-MW power generation facility and make available the surplus power to reduce the power deficiency being faced in the state.

â€‌ Anil then goes on to issue another veiled threat to Deshmukh: “We firmly believe the state will not do and cause to be done any act that could amount to promoting or facilitating breach of obligations undertaken by Reliance Industries in the interests of millions of shareholders and the public at large.â€‌ He doesn’t stop there.

Six days later on 10th April Anil Ambani copied this letter to the power and other ministries in Delhi, with a warning not to approve any power sector proposal from his brother unless it is strictly for captive purposes. “Reliance Industries’ intent to set up power plant in excess of captive requirement is a clear breach of the (no competition) agreement,â€‌ he says.

“RIL cannot be engaged in electricity generation, transmission and distribution without the consent of Reliance Anil Dhirubhai Ambani group for non-captive use anywhere in the country.â€‌