RIL signs revised gas supply agreement with RNRL
25 Jun 2010
Reliance Industries Ltd and Reliance Natural Resources Ltd today signed a revised gas supply agreement in line with a new family agreement that ended years of corporate feud between the Ambani brothers, Mukesh and Anil.
The development paves way to government allocation of natural gas from the Mukesh Ambani-led Reliance Industries to the power plants of Anil Ambani group's RNRL.
"Pursuant to and in compliance with the directions and orders contained in the judgment of Hon'ble Supreme Court of India delivered on 7th May 2010, RIL and RNRL have today signed a gas supply master agreement," an RIL release said.
"The said gas supply master agreement is compliant with the gas utilisation policy and EGOM decisions," it added.
The Supreme Court, in its 7 May judgement, had turned down RNRL's demand for cheap gas from RIL based on a family agreement.
RNRL had gone to court against RIL in 2006, seeking 28 mmscmd of gas for its proposed Dadri plant at $2.34 per mmBtu. Against this, the government had fixed price for gas from RIL's KG-D6 fields at $4.20 per mmBtu.
