Anil Ambani seeks review of gas sale rejection

Reliance Natural Resources Ltd Chairman Anil Ambani is understood to have sought a review of the government's decision rejecting the sale of natural gas by RIL to it, saying the $2.34 per mBtu price was the same quoted by the seller in an NTPC tender.

Ambani, who met petroleum ministry officials, including Secretary M S Srinivasan, to make a case for the review of last week's decision, reportedly said the government's estimate of revenue losses due to the sale was only "notional".

However, government officials are believed to have told Ambani that the gas price had a direct bearing on government revenues and it could not allow "a deal between two brothers arrived on the sidelines of a demerger agreement to be passed on as a price arrived at arms-length basis."

Sources said the officials also told Ambani the NTPC price mentioned by RNRL has never come to the ministry for approval and to say that, that price could apply for all gas from RIL's K-G basin field would be incorrect.

Besides raising the gas sourcing issue, Ambani is also believed to have sought the ministry's intervention in allotment of coal bed methane blocks, industry sources said.

Anil Ambani group firms Reliance Natural Resources Ltd and Reliance Energy Ltd, along with their consortium partner Geopetro of France, were being allotted four CBM blocks but they contend they have won two more blocks.

The consortium had bid for all 10 CBM blocks, bidding for which closed on June 30.