|Rediff India Abroad Home | All the sections|
REL informed RIL on UP plans
December 01, 2004 20:05 IST
Contrary to reports, Reliance Energy headed by Anil Ambani had informed the parent company Reliance Industries in the last financial year about the Rs 14,000 crore (Rs 140 billion) investment plans including the new generation projects and had received a go ahead along with financial backing.
It has been widely reported that unilateral announcement of investments including a Rs 11,000 crore (Rs 110 billion) power project at Dadri in UP by REL chairman and managing director Anil Ambani was a major cause of the battle for control between the two brothers that led to the contentious resolution at RIL's July 27 board meeting, granting superior power to chairman Mukesh Ambani.
Prior to being converted as Reliance Energy, BSES had made a presentation for an investment plan of Rs 14,000 crore before the board of RIL and majority shareholders on January 29, 2004, in the presence of Reliance chairman and managing director, Mukesh Ambani.
Mukesh Ambani, after a separate meeting with younger brother Anil just before the meeting, attended by 12 directors, had proposed to the board an investment/loan of up to Rs 5,000 crore (Rs 50 billion) from RIL in its power companies -- BSES and Reliance Delhi Power Private Ltd, sources close to Reliance group said.
Despite repeated attempts, RIL spokesperson in Mumbai could not be contacted for comments. Sources said that Reliance Energy had invited RIL board members including Mukesh Ambani at a meeting on October 20 and made a presentation before them on various projects including the 3,500 mw project in UP.
7333: The Latest News on Your Mobile!