Papers on gas supply to be produced before court today
The documents that specify the terms of supply of gas from the Krishna-Godavari basin by RIL to RNRL would be submitted by Anil Ambani’s counsel in the Bombay High Court on Wednesday.business Updated: Oct 07, 2008 21:35 IST
The documents that specify the terms of supply of gas from the Krishna-Godavari basin by Mukesh Ambani’s Reliance Industries (RIL) to Anil Ambani’s Reliance Natural Resources (RNRL) would be submitted by Anil Ambani’s counsel in the Bombay High Court on Wednesday.
The terms of the agreement are part of a memorandum of understanding signed between the Ambani brothers.
RIL had said that the production of the relevant sections of the MoU at this stage would not be correct because it has not been exhibited so far before the court as a document.
According to RNRL, the MoU entitles it to 2.8 crore million tonnes of standard cubic metres of gas per day at $2.34 per million British thermal unit for 17 years from the KG basin. RIL had bagged the contract for producing gas from the basin and had to supply gas to RNRL according to the MOU.
RIL had argued that it would not be possible to supply gas to RNRL at the price claimed by the latter because the gas price was decided by the government as a matter of policy. Moreover, RNRL needed gas for its power project, which was yet to come up and if it purchased gas from RIL it would have no option but to sell it to a third party, RIL had said.