RIL sells diesel to the country’s biggest diesel guzzler, a first in a decade

After a decade, Reliance Industries Ltd , lead by Mukesh Ambani, is selling diesel to the state railways again after pricing of the fuel was freed, a company source said on Wednesday.

Indian Railways, the country's biggest diesel guzzler, consumes up to 2.5 million tonnes of the fuel each year. Until last year, it received supplies from state refiners who used to be compensated for selling fuel at below-market rates.

The government freed diesel pricing last October, providing a level playing field to private companies like Reliance and Essar Oil.

The Reliance source, who was not authorised to speak on the record, said the company has been selling a "small quantity" of diesel to the railways.

It was not immediately clear how much it sold in 2005/06.

(Image credits: Indiatimes)