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Ambanis in stalemate over gas supply

business Updated: Jul 01, 2009 01:08 IST
HT Correspondent
HT Correspondent
Hindustan Times
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In yet another twist to the ongoing battle between the Ambani brothers over the supply of gas, the Mukesh Ambani owned Reliance Industries Ltd (RIL) has rejected Anil Ambani controlled Reliance Natural Resources Ltd’s (RNRL) offer to start discussions on signing an agreement for supply of gas from the D6 gas fields.

In a letter to RNRL on Tuesday, Reliance has categorically told that it would not sign any agreement on the gas supply issue without the government’s approval.

RIL is believed to be preparing to move the Supreme Court early next month. It said that the company has been advised by its legal team on the lack of clarity in the June 15 judgement of the Mumbai High Court on the aspect of the government’s role in the issue.

The Bombay High Court had on June 15 given the two companies a month’s time to work out firm gas volumes, price, timelines and other commercial details for sourcing the fuel from Krishna-Godavari basin fields.

“We cannot sign any agreement without approval of the government on price, quantity and tenure,” the letter said, adding that RIL was still in the process of legal consultation and would revert.

On its part, RNRL’s spokesperson said the Bombay High Court judgement is clear on the gas price, quantity and terms. RNRL officials had waited in vain for a meeting they had proposed through a letter on June 25 with their counterparts in RIL. The Court had also ruled that RIL should honour its commitment to supply gas to RNRL.