Ambani war rocks politics again

A day after Anil Ambani lashed out at the petroleum ministry for favouring his elder brother Mukesh in the gas dispute between their companies, the issue rocked Parliament.

On Wednesday, Samajwadi Party chief Mulayam Singh Yadav forced two adjournments in the Lok Sabha, demanding that the petroleum ministry explain why it was not allowing gas to reach Anil’s power plant at Dadri in Uttar Pradesh.

As his party MPs repeatedly stormed into the well of the House, Yadav accused the UPA government of depriving his home state of much-needed power. Refusing to let the Lok Sabha start the much-awaited discussion on the Indo-Pak joint statement, Yadav insisted on an explanation from petroleum minister Murli Deora. While the ruckus was on, prime minister Manmohan Singh entered the house for the debate.

It was only after parliamentary affairs minister Pawan Bansal assured Yadav that Deora would make a statement on Monday that the SP quietened down and allowed the discussion to start. The Ambani brothers have been at war for four years over gas supplies from Reliance Industries Ltd’s (RIL’s) blocks in the Krishna-Godavari basin.

Although an order from the Mumbai high court decreed that Mukesh’s RIL should supply Anil’s Reliance Natural Resources Ltd with gas at a concessional price, the petroleum ministry has asked the Supreme Court to nullify the HC order. The ministry’s contention is that the gas is a national asset and cannot be subject to private agreements.

On Tuesday, Mukesh was in Delhi to meet senior government and Congress leaders. On Wednesday, after his blistering attack on government, Anil too paid a visit to the capital.

A source familiar with the hectic lobbying by the two brothers said that the Congress was taken aback by Anil’s speech at his company’s AGM on Tuesday. According to the source, Anil’s friends in the Congress feel that the frontal attack on the petroleum ministry has made it difficult for them to plead his case with the government.

Although Anil did not name Deora, it was evident that he was blaming the minister for a pro-Mukesh bias. Deora held a meeting with petroleum ministry officials on Tuesday at which the Ambani gas battle is believed to have been discussed. Another meeting is scheduled in a day or two. Although there was speculation on Wednesday that the ministry is considering amending the affidavit it had filed in the Supreme Court, it is learnt that no decision has been taken yet.

The government and the Congress are clearly embarrassed by Anil’s public accusations and are wondering how to contain the damage. The fact that it has now reached Parliament is worrying party managers. A BSP MP, Dara Singh Chauhan, stirred the pot by flaying both the Congress and the SP for allowing a corporate war to rock the Lok Sabha.

A Bloomberg report says, meanwhile, that Anil will ask the SC to advance final hearings in the natural gas supply dispute. Notices were served on Wednesday to the oil ministry and Reliance Industries, informing them that RNRL lawyers will approach the SC on Thursday seeking to start the final hearings on September 1. The SC is scheduled to start preliminary hearings on the case on September 1.