RIL not to sign pact with RNRL on gas supply | business | Hindustan Times
Today in New Delhi, India
Dec 03, 2016-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

RIL not to sign pact with RNRL on gas supply

business Updated: Jun 30, 2009 21:52 IST

PTI
Highlight Story

Rejecting offer for talks, Mukesh Ambani-run Reliance Industries on Tuesday told Anil Ambani group firm RNRL that it would not sign any agreement on the gas supply issue without approval of the government.

RIL, which is believed to be preparing to move the Supreme Court early next month, in a communication to RNRL
noted that it had been advised that there was lack of clarity in the judgement on the aspect of the government's role in the issue, sources in the know said quoting the letter.

"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 shall revert.

Yesterday, RNRL officials had waited in vain for a meeting they had proposed vide a letter dated June 25 with
their counterparts in RIL.

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.

The Court had also ruled that RIL should honour its commitment in the family split agreement to supply gas to
RNRL.

In today's letter, RIL mentioned about the stand it had taken in the appeal in the Bombay High Court, saying aspects
such as price, quantity and tenure to be incorporated into any agreement or any arrangement would be subject to approval of the government.

Sources in the know indicated that RIL was all set to go to the Supreme Court on July six when it reopens after
vacation and apprehending the same RNRL had on June 19 filed a caveat before the apex court to guard against any ex-parte hearing.

"We have not completed the analysis of the implications of the (high court) judgement and the process of consultation of with legal advisers. We will decide upon further steps after competition of this process," an RIL spokesperson had said yesterday.

The terms of the gas supply agreement, as per the MoU which split the Dhirubhai Ambani empire in 2005, were to be
based on RIL's bid for NTPC tender.

The price in NTPC tender was USD 2.34 per million British thermal unit, 44 per cent lower than Government approved rates of $ 4.20 per mmBtu.