REL writes to RIL on plans, resignations

In yet another missive in the battle for control at the Rs 99,000-crore Reliance group, the Reliance Energy REL board has formally sought ...

In yet another missive in the battle for control at the Rs 99,000-crore Reliance group, the Reliance Energy REL board has formally sought the 8216;8216;views and confirmations8217;8217; from the board of parent Reliance Industries RIL on future resources available to REL for implementing its growth plans.

In a letter dated December 4, which was released by Reliance Energy on Sunday, the company has also asked the board of RIL 8212; which owns around 50 per cent stake in the power major 8212; for guidance on 8216;8216;the continuation of RIL nominees on REL board8217;8217;.

The four-page letter, signed by independent directors General V.P. Malik and Leena Srivastava, has requested the board of RIL to meet and convey its decision to the REL board. When contacted, a senior RIL official did not offer any comments, saying 8216;8216;We will get back.8217;8217;

The release of the letter is seen as part of the Anil Ambani camp8217;s strategy to focus on corporate governance issues regarding RIL8217;s investments in telecom arm Reliance Infocomm, which is controlled by Mukesh Ambani.

In the letter, the REL board has sought clarity from RIL on future supply of gas from its gas fields in Andhra Pradesh for REL8217;s 3,740 MW power project in Uttar Pradesh. 8216;8216;There have been media reports that RIL8217;s production of gas8230;has been delayed. You will appreciate that the availability, pricing and quantum of gas are critical competitive aspects for the prestigious project,8217;8217; states the letter.

REL8217;s investment in the UP power project is reportedly one of the bones of contention between the two brothers.

The REL board adds that Rs 3,500 crore 8212; out of an approved investment of Rs 5,000 crore by RIL in January 2004 8212; has still not been received by the power firm. It has also sought RIL8217;s assistance, technical and otherwise, in greenfield and new projects.

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The REL board also listed four RIL nominees who had put in their papers on November 25. REL8217;s board meeting on November 30 had asked these four directors 8212; and two others 8212; to reconsider their resignations. Separately, the letter also lists the terms of appointment of chairman and managing director of Reliance Energy, Anil Ambani, who has been nominated by RIL.

On Saturday, a Reliance spokesperson had said Mukesh Ambani had left 8216;8216;all settlement issues8217;8217; to mother Kokilaben.