Mumbai: The Dadri Power Project in Uttar Pradesh, being developed by Reliance Power Ltd, would need an investment of at least Rs20,000 crore, Reliance Natural Resources Ltd (RNRL) has said in its latest affidavit filed in the Bombay high court where it is fighting a case over the terms of gas supply pact with Reliance Industries Ltd (RIL).
This “colossal” sum of Rs20,000 crore cannot be raised unless RNRL gets a “bankable gas supply contract” from RIL, the affidavit said.
Both Reliance Power and RNRL are Anil Dhirubhai Ambani group (Adag) companies. RNRL is fighting a legal battle over the terms of the gas supply deal with Mukesh Ambani-led RIL.
Money matters: Harish Salve, lawyer, Reliance Industries Ltd. Ashesh Shah / Mint
The affidavit came in a reply to RIL lawyer Harish Salve’s allegation during arguments that Adag had raised a huge amount from overseas lenders, so money should not have been an issue for the Dadri project.
RNRL affidavit conceded that $500 million (Rs2,440 crore today) was raised through external commercial borrowing route, but said that it was not enough for the project which envisages generation capacity of 7,480MW.
The money was parked in debt-based mutual funds—following Reserve Bank of India norms—as the project was delayed because of RIL’s refusal to sign a bankable contract for gas supply, it says. It also refuted Salve’s statement that Dadri project would take several years to come up.
It can be set up within 20-24 months, RNRL said.
The affidavit also reiterated RNRL’s stand that the Union government need not approve the price of KG gas which RNRL is supposed to get.
The court is likely to pass the order on the current stay on sale of gas from KG basin to third parties on Monday.