Reliance Energy on Tuesday decided to approach its principal shareholder Reliance Industries on "matters concerning the future prospects of the company" and reposed full faith in the present management led by chairman and managing director Anil Ambani.
According to a Reliance Energy board member who attended Tuesday's meeting, the board intends to consult the Reliance Industries board on gas linkages for Reliance Energy's upcoming Rs 10,000 crore (Rs 100 billion) gas-based power project at Dadri in Uttar Pradesh.
Also read
The Reliance 'ownership issue'
Earlier, Reliance Industries had said gas discovered by it in the Krishna-Godavari basin would be able to reach Dadri only in 2008, though the 3,500 MW Dadri power plant was projected to go on stream by 2006. This had led the Anil Ambani camp to suspect that gas would be denied for the project, something Reliance Industries executives have denied.
In a press release, Reliance Energy said the company had also decided to request the six directors who had put in their papers last week without citing any reasons to reconsider their decision.
The six directors are executive vice-chairman Satish Seth, finance director KH Mankad, director (operations) SC Gupta, business development director JP Chalasania and two non-executive directors, J Ramachandran and Amitabh Jhunjhunwala.
Reliance Industries holds nearly 51 per cent equity stake in Reliance Energy.
The board meeting, which started at 12.30, lasted nearly four hours because presentations were made on three new projects, a director said.
"It was an excellent meeting. Anil Ambani was very open. Everyone expressed their views very openly," he added.
An independent director said Ambani did not speak much but looked his "usual cheerful self". The director added, "The recent war of words between the Ambani brothers was not discussed at all during the meeting."
What transpired at the high table