It was master stroke from Mukesh Ambani on July 12, 2009 when Mr. Murli Deora said, “the gas does not belong to Ambani brothers but the Govt.”. Ever since Mukesh Ambani lost the case in Mumbai High Court against his brother Anil Ambani. We knew something more interesting and exciting is lying in coffers. Mukesh Ambani does not like to fight his battle by himself and not even through the media. He always has strong coterie to fight on his behalf unlike his younger brother, Anil Ambani, who takes on the mission by himself.
The July 12, 2009 statement from the Minister of Petroleum and Natural Gas was one such powerful statement from one of the most lucrative Ministries of the Govt. that was set to jolt the nation and we knew the WAR is on. Something more spicy and exciting is on the cards. So thereby we have a discussion on the two brothers in Parliament. The names of two companies RIL (Reliance Industries Limited) and RNRL (Reliance Natural Resources Limited) are just incidental in the whole brouhaha.
The news of Ambani’s have always been interesting and have evinced the interests of everybody in India from Prime Minister to the beggar since Dhirubhai Ambani days. The name and the power it holds that it can make or break the Govt. of India (it’s not an over-rated statement). The Govt. has been extra cautious while dealings with things related to Ambani name. Even more than its alliance partners in Govt. Now the Govt. and the opposition is in fix on which side it should take the stand. Both sides are Ambani, one younger and the elder. It was clear from the beginning some of the foul plays that have been fundamental foundation of the Reliance empire will spill out on the streets. Anil Ambani accused his brother of showing more than actual costs.
Before proceeding further, let me clarify on the whole matter and what KG6 is? The Govt. of India has created some blocks in India (land and sea), where it is thought, said (of course after researching) that there lies a possibility or opportunity of finding oil in those areas. Lying hundreds of feet beneath the surface. The Govt. invites the bid for exploration from different companies. The allotment of the block under contention is given to the Company which offers the maximum amount of profits to the Govt. from the production of oil extracted under such block. RIL won the bid wherein they were ready to offer 85% of its profits to the Govt. after recovery of its investment blocks. RIL is on record the first company in the world to have found oil in a shortest duration of time and also bring it up for production.
Over the oil field lies a huge reserve of floating natural gas which can be used to run Industrial plants and also to generate electricity. Any gas that is found on the oil blocks is like a freebie to the Exploration Company, as the investments incurred are all booked for oil exploration. RIL is also the cheapest producer of natural gas in the world.
At the time of separation of the two brothers, the more media savvy and upcoming businesses came under younger brother’s fold and the business of Power (electricity). While the elder brother decided to hold on to the traditional business of the Group, i.e. textile and oil refining. But the caveat was the elder brother will provide gas to the younger one for running the power production plants that the younger one was planning to build. The price decided was roughly 55% of the market price of the Gas.
Whether it has been written on the agreement? How the price has been arrived at? This is the whole point of contention.
What is the fight between/amongst? As a brother, I know and feel I can do anything for my brother. Now as we are grown up, we have more reasons to support and help each other and take lesser and lesser number of things to our parents to discuss for. But Ambani brothers @ 50, I don’t know what sense they have. What they will be able to teach to their kids?
This is not just a gas issue.
Is it for money?
Is it for power?
Is it being sadistic or schadenfreude?
Is it for market capital?
Whatever may be the issue between the brothers?
The news of Ambani’s have always been interesting and have evinced the interests of everybody in India from Prime Minister to the beggar since Dhirubhai Ambani days. The name and the power it holds that it can make or break the Govt. of India (it’s not an over-rated statement). The Govt. has been extra cautious while dealings with things related to Ambani name. Even more than its alliance partners in Govt. Now the Govt. and the opposition is in fix on which side it should take the stand. Both sides are Ambani, one younger and the elder. It was clear from the beginning some of the foul plays that have been fundamental foundation of the Reliance empire will spill out on the streets. Anil Ambani accused his brother of showing more than actual costs.
Before proceeding further, let me clarify on the whole matter and what KG6 is? The Govt. of India has created some blocks in India (land and sea), where it is thought, said (of course after researching) that there lies a possibility or opportunity of finding oil in those areas. Lying hundreds of feet beneath the surface. The Govt. invites the bid for exploration from different companies. The allotment of the block under contention is given to the Company which offers the maximum amount of profits to the Govt. from the production of oil extracted under such block. RIL won the bid wherein they were ready to offer 85% of its profits to the Govt. after recovery of its investment blocks. RIL is on record the first company in the world to have found oil in a shortest duration of time and also bring it up for production.
Over the oil field lies a huge reserve of floating natural gas which can be used to run Industrial plants and also to generate electricity. Any gas that is found on the oil blocks is like a freebie to the Exploration Company, as the investments incurred are all booked for oil exploration. RIL is also the cheapest producer of natural gas in the world.
At the time of separation of the two brothers, the more media savvy and upcoming businesses came under younger brother’s fold and the business of Power (electricity). While the elder brother decided to hold on to the traditional business of the Group, i.e. textile and oil refining. But the caveat was the elder brother will provide gas to the younger one for running the power production plants that the younger one was planning to build. The price decided was roughly 55% of the market price of the Gas.
Whether it has been written on the agreement? How the price has been arrived at? This is the whole point of contention.
What is the fight between/amongst? As a brother, I know and feel I can do anything for my brother. Now as we are grown up, we have more reasons to support and help each other and take lesser and lesser number of things to our parents to discuss for. But Ambani brothers @ 50, I don’t know what sense they have. What they will be able to teach to their kids?
This is not just a gas issue.
Is it for money?
Is it for power?
Is it being sadistic or schadenfreude?
Is it for market capital?
Whatever may be the issue between the brothers?
After Murli’s remarks on July 12, 2009, it was time for Anil Ambani to come full throttle on 27th July 2009 at the AGM of RNRL. He knew his shareholders are going to push for some dangerous and serious questions to which he, himself is searching for an answer. So he hit back at all the forces that have put the existence of his Company (RNRL) and pounds of his fictitious wealth in question. RIL, Ministry of Petroleum were taken on hands. It was a very sad day for the Indian democracy. The way he lashed at the Ministry and its in-charge who is acting pimp of Mukesh Ambani is a mockery of the whole system and in turn, the accusation does not leave even the prestigious position like the Prime Minister of India because of the way, the Govt. and the Ministry was used. Dr. Manmohan Singh should have filed an anti-trust suit against Mr. Anil Ambani. You may not be getting your rights. But that is no way to react and say things about the Govt. If you have grievance, a place and system called Courts has been put in place to voice your opinion and to fight for your rights.
But as the saying, “the World belongs to the Rich and Powerful. They are not governed by laws but by Will.”
But as the saying, “the World belongs to the Rich and Powerful. They are not governed by laws but by Will.”
So in comes the pimp of Anil Ambani in the form of Mulayam Singh Yadav and his party, Samajwadi Party. I don’t understand what wadi/wada they have done to the samaj and what they wish to undertake? Mulayam Singh raises Anil Ambani’s stand in the Parliament. Amar Singh has undergone a major surgery. When he is ready, it will become more interesting and some more shocking words will be exchanged.
Murli Deora clarifies on the statement not as Mulayam Singh had raised but as RIL would like to prove its stand in the whole controversy. If you carefully look through the drafting of the reply, it clearly indicates the point.
Murli Deora clarifies on the statement not as Mulayam Singh had raised but as RIL would like to prove its stand in the whole controversy. If you carefully look through the drafting of the reply, it clearly indicates the point.
We all know Parliamentarians lobby for the big industrial houses and the stand points of industry lobbies who fund Parliamentarians generously for the elections. But to bring the whole issue and represent yourself as one of the sides of the controversy for a corporate giant and that too in a Parliament, is a clearly big blow to the whole idea called DEMOCRACY.
They can and have to act as PIMPS but should not at all the times. At least they can act diplomatic in their speeches and comments in context to Parliamentary proceedings and procedures.
I don’t know whether I should be saying this or not. But the battle between the two brothers is not going to end here. Even if elder supplies gas or not and junior gets gas or not. The virus will spread to other businesses. It is the recipe for the disaster. Ten years down the line, Reliance may not be able to carry the aura for which it stands today.
Don’t be surprised for any kind of twists and turns in the story. It’s not just a big corporate battle or a family dispute amongst two powerful wealthy brothers. It’s certainly more than that???????
They can and have to act as PIMPS but should not at all the times. At least they can act diplomatic in their speeches and comments in context to Parliamentary proceedings and procedures.
I don’t know whether I should be saying this or not. But the battle between the two brothers is not going to end here. Even if elder supplies gas or not and junior gets gas or not. The virus will spread to other businesses. It is the recipe for the disaster. Ten years down the line, Reliance may not be able to carry the aura for which it stands today.
Don’t be surprised for any kind of twists and turns in the story. It’s not just a big corporate battle or a family dispute amongst two powerful wealthy brothers. It’s certainly more than that???????
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