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This is an archive article published on July 4, 2010

R-Power may seek gas allotment from KG-D6 fields

After merging RNRL with itself,Anil Ambani Group firm Reliance Power is likely to apply to the government for allocation of natural gas.

After merging RNRL with itself,Anil Ambani Group firm Reliance Power is likely to apply to the government for allocation of natural gas,reasoning that it being an end-user meets the eligibility criteria for allotment.

As per the government’s gas utilisation policy– the Supreme Court has upheld its validity– natural gas can be allocated only to an end-user and traders like Reliance Natural Resources Ltd (RNRL) are barred.

Industry sources said though Mukesh Ambani-led RIL had signed a new gas sales master agreement (GSMA) with RNRL expressing its intent to supply natural gas from KG-D6 field on terms laid in government’s pricing and utilisation policy,it could not have entered into an actual gas sale purchase agreement (GSPA) with it as such a pact can only be signed with end-users.

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