RNRL, the energy sourcing, supply and transportation arm of Anil Dhirubhai Ambani Group (ADAG), has reported a net profit of Rs 24.21 crore (Rs 242.1 million) for the third quarter ended December 31, 2008, as against Rs 23.7 crore (Rs 237 million) a year ago, up by 1.79 per cent.
It said that natural gas for the group's Dadri power plant would be sourced from the KG-D6 basin, which is expected to start production soon.
"The government has decided to allocate natural gas from KG-D6 basin to power project at Dadri, once the block commences production," a company statement said.
RNRL said turnover rose to Rs 137.71 crore (Rs 1.37 billion) in the quarter under review as against Rs 40.73 crore (Rs 407.3 million) a year ago.
For the nine month ended December 31, the company has posted a net profit of Rs 60.38 crore (Rs 603.8 million), against Rs 58 crore (Rs 580 million) for the same period last year.
ADAG claims right over 70 per cent of KG-D6's initial output of 40 million standard cubic meters per day by virtue of a family split and has taken Mukesh Ambani-led RIL to court for performance of the agreement.
The 28 mmscmd gas is to be used as feedstock at the 3,500 MW plant at Dadri in Uttar Pradesh.
The government has recently said that the natural gas from the KG-D6 basin exploited by Reliance Industries Ltd would be allocated subject to availability and would also be given to Dadri power plant.
The company is engaged primarily in sourcing, supplying and transportation of gas, coal and liquid fuels. It is also engaged in exploration, production and distribution of gas and the mining of coal, it said.
It has four blocks for the exploration of coal-bed methane and one block for oil and gas. The company has also forayed into the cement business and is in the process of identifying locations to set up cement plants to be integrated with group's power plants.
