Ambani brothers patch up for healthy competition

Mukesh Ambani's Reliance Industries Ltd and Reliance ADA Group companies led by Anil Ambani, on Sunday canceled all non-compete arrangements signed in January 2006 and entered into a new simpler, non-compete agreement with respect to only gas-based power generation. The agreements have been approved by the board of directors of RIL and Reliance ADA Group companies. 
 
The cancellation of the existing non-compete agreement will provide enhanced operational and financial flexibility to both groups, and greater ability to participate in high growth sectors of the country's economy, such as oil and gas, petrochemicals, telecommunications, power, and financial services. 
 
RIL said it would not enter into gas-based power generation business till March 31, 2022. An appropriate exception has been made in respect of RIL's captive gas-based power plants. These developments will eliminate any room for further disputes between the two groups, on matters relating to the scope and interpretation of the non-compete obligations. RIL and Reliance Natural Resources Ltd will expeditiously negotiate gas supply arrangements in accordance with the orders of the Supreme Court. RIL and Reliance ADA Group are hopeful and confident that all these steps will create an overall environment of harmony, co-operation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both groups.