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RNRL-Reliance Industries Case - Verdict on gas sharing likely today

15 Jun 2009 Evaluate

The long-awaited verdict in the Ambani family feud over sharing of natural gas from Reliance Industries Ltd (RIL) controlled Krishna Godavari basin gas field is expected to be delivered today. A Division Bench of the Bombay High Court comprising Mr Justice J.N. Patel and Mr Justice K.K. Tated would deliver the judgment.

 

In 2006, Reliance Natural Resources Ltd (RNRL) led by Mr Anil Ambani had asked the court to give direction to RIL to ensure supply of 28 mmscmd gas on the lines of the earlier NTPC-RIL contract price of $ 2.34/mmbtu.

 

RNRL is entitled to receive gas under the original Reliance group demerger agreement. RNRL had also sought court directions so that the Gas Supply Master Agreement (GSMA) which was entered into by the two companies in January 2006 could be amended.

 

During the arguments, RNRL had alleged the GSMA was one-sided and, therefore, it could not undertake large-scale gas-based power projects in Dadri, Uttar Pradesh. RIL, throughout its arguments before the court, had maintained that gas could not be supplied to RNRL or any other company for lesser than $4.20/mmbtu, as the price has been decided by the Empowered Group of Ministers. crackcrack

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