Faced with crisis, Reliance honchos reach Najeeb Jung

Facing a Comptroller and Auditor General (CAG) audit ordered by former Arvind Kejriwal-led government in the financial bungling over the last one year, BSES discoms owner Anil Ambani on Wednesday met lieutenant governor Najeeb Jung demanding subsidy and tariff hike on Wednesday. On the same day, Reliance Industries executive director PMS Prasad also met Jung.

Anil Ambani reportedly asked Jung to release the subsidy money Delhi government owes the discoms. He also asked the L-G for a tariff hike. Sources told Millennium Post that the issue of CAG audit of the discoms was discussed in the meeting. 

Prasad’s meeting, however, comes in the wake of the FIR filed against Reliance Industries and its chairman Mukesh Ambani in gas pricing case by the Delhi government.

Prasad is reported to have discussed with the L-G how the FIR can be withdrawn.

Prasad’s meeting follows Delhi’s Anti Corruption Bureau filing the FIR against RIL, Mukesh Ambani and oil minister M Veerappa Moily for allegedly creating an artificial shortage of gas in the country and raising prices. 

Sources told Millennium Post that the issue of CAG audit of the discoms was discussed in the meeting. Ambani also asked L-G to release the subsidy money. Former chief minister Arvind Kejriwal had announced 50 per cent cut in electricity tariffs for households consuming up to 400 units of power per month.

Both Reliance-owned discoms are afraid that the subsidy worth Rs 228 crore might be adjusted against the Rs 4,062 crore outstanding dues to Delhi Transco Limited, Indraprastha Gas Corporation and Pragati Power Corporation Limited. The discoms are in an urgent need of the subsidy money to clear outstanding bills of NTPC, NHPC and Damodar Valley Corporation among others.

However, officials at the L-G Secretariat described Ambani’s hour-long meeting with Jung as a ‘courtesy call. 

In January, Kejriwal had ordered a CAG scrutiny of private power distribution companies. The BSES discoms had expressed their unhappiness over the decision. The former chief minister had even accused the discoms of blackmailing the government by threatening power cuts up to 10 hours a day, and warned them of strict action including possible cancellation of licenses.

The firms had warned the government of 8-10 hours power cuts per day, citing fund crunch.

The BSES Yamuna and BSES Rajdhani, which supply power to 70 per cent areas in Delhi, owe around Rs 4,062 crore to Delhi government-run power generation and transmission companies.