Business

Inside The Hot Gas Balloon

With the supply date drawing near, Anil's strategy for his pet gas project seems unclear

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Inside The Hot Gas Balloon
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So, what'll Anil do if his power companies are unable to lift the requisite quantities of gas by mid-2009? One option is to resell the gas that he gets from RIL. It's a lucrative one due to the differential between RIL's low supply price and the existing market rate (which will go up further by 2009). But the agreement signed between the two camps clearly specifies that the ada group cannot trade (or resell) the gas. Alternatively, RIL will be free to sell the fuel to other consumers in case Anil is not in a position to use it by the year that's been spelled out in the deal. If that happens, Anil will find himself in a piquant situation where his projects are actually starved of gas or he agrees to pay a much higher price to another supplier. According to sources, Anil's allegations that the gas agreement deviates from the agreed positions (in June 2005 when the patch-up was announced) is only a way to protect his business interests and prevent the above mentioned scenarios. For, it will partly convince the world that the delays in the commissioning of the power projects were all thanks to ril's posturing. And it will also help the younger brother to either force RIL to allow him to trade in gas, or delay the supply date.

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