Reliance Industries (RIL) today alleged that Anil Ambani Group company RNRL dragged it to the court over the gas supply issue only to jeopardise RIL’s Krishna- Godavari (KG) exploration project.
“You (RNRL) sued because you want to put RIL’s project (KG basin gas exploration) in jeopardy,” RIL lawyer Harish Salve said in the Bombay High Court.
The two companies are fighting over terms of the Gas Supply Master Agreement (GSMA), whereby RIL is to supply gas for RNRL’s power generation project at Dadri in Uttar Pradesh.
RNRL’s contention that its power project was stalled because the GSMA was not “bankable” was “bogus” as the Dadri project did not depend on gas from KG basin, Salve said.
The RIL counsel said the Dadri project, conceived much before the demerger of Reliance, was supposed to get gas from the government.
RNRL last year obtained a stay from the High Court on RIL’s entering into a contract with other companies for sale of gas from KG basin. Gas production from the basin is expected to start next year.
“RIL has invested $10 billion in the KG project. Impediments in it would put us in serious trouble. That’s what this litigation is about,” he said.
