Reliance Industries Limited begins gas production from Krishna Godavari -D6

Finally,the Mukesh Ambani-controlled Reliance Industries has begun gas production from Dhirubhai 1 and 3 discoveries in the KG-D6 block,amidst reports that the company may spend an additional $5.9 billion on developing fields in the Krishna-Godavari basin.

At peak production of oil & gas, the KG-D6 facility would produce over 550,000 barrels of oil equivalent per day. The company had planned to start gas production from September last year and later at the beginning of this year.

As reported by FE on March 2,the company aims at gas production of 80 million standard cubic meters a day(mmscmd) by December-end instead of an original target of 2011.

An RIL release said the initial production of gas from the Dhirubhai 1 and 3 will be sold to existing fertiliser and power companies, which will substantially cut the government’s subsidy burden.

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Value from family differences

It was a terse note on June 18, 2005 from Kokilaben D Ambani that many thought would put an end to a public spat between her two sons-Mukesh and Anil Ambani-over ownership of the Reliance empire. Three years later, the spat continues, the latest over Anil's plans for a stake sale in his flagship Reliance Communications (RComm) to South Africa's MTN. This time, no one's stepping in, not even the matriarch. Paradoxically, after the split, both sides of the Reliance empire have grown manifold in value under the two brothers. Is that why no one's complaining?

In her 2005 statement, Kokilaben Ambani said, "With the blessings of Srinathji, I have today amicably resolved the issues between my two sons keeping in mind the proud legacy of my husband. I am confident that Mukesh and Anil will uphold the values of their father and work towards protecting and enhancing value of over 3 million shareholders of the Reliance group."

Mukesh, who got Reliance Industries Ltd (RIL) and the erstwhile Indian Petrochemicals Corporation Ltd, and Anil, who took control of what was then Reliance Infocomm, Reliance Energy and Reliance Capital, did indeed protect and enhance shareholders' interest. They added new businesses and pumped in much investment and vigour into existing ones.

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Big-ticket bids to hot up Coal-To-Liquid project

Country’s top corporate houses including the Tatas, Mukesh Ambani-controlled Reliance Group, the Jindals along with the Adani Group and others will now have to compete and out bid each other to secure rights for a cluster of coal blocks—with estimated reserves of about 1.5 billion tonne—for their proposed $8 billion coal-to-liquid (CTL) project in India.

With the soaring cost of crude oil, currently close to $130 a barrel, there has been a huge rush of proposals from big corporate houses for coal block for setting up a coal-to-liquid project. Prime Minister Manmohan Singh, as the minister in-charge of coal, has approved setting up of one coal-to-liquid (CTL) project in the country. Singh has directed the ministry of coal to invite fresh expression of interests (EOIs) for allotment of identified coal blocks for setting up a CTL project.

As per the ministry of coal estimates, coal reserves of about 1 to 1.5 billion tonne are required to produce 3.5 million tonne oil & oil products. The block/cluster of these coal blocks should enable mining operations of 28-31 million tonne run-of-mine coal per annum for 30 years. The estimated investment for setting up such a project is in the range of $6 billion to $8 billion.

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