RIL, RNRL sign revised new gas supply master agreement
A month after the Supreme Court’s judgement settling the five-year gas dispute between the Ambani brothers, Mukesh Ambani’s RIL and Anil’s RNRL on Friday announced the signing of a revised gas supply master agreement (GSMA), reports HT Correspondent.business Updated: Jun 26, 2010 02:28 IST
A month after the Supreme Court’s judgement settling the five-year gas dispute between the Ambani brothers, Mukesh Ambani’s Reliance Industries Ltd (RIL) and Anil’s Reliance Natural Resources Ltd (RNRL) on Friday announced the signing of a revised gas supply master agreement (GSMA).
The move would pave the way for gas allocation to power plants being set up by Anil’s group company — Reliance Power Ltd.
In separate statements both RIL and RNRL said “Pursuant to and in compliance with the directions and orders contained in the judgement of the Supreme Court of May 7, 2010, RIL and RNRL have on June 25, 2010 signed a revised GSMA.”
The apex court had asked the two groups to renegotiate the agreement under the gas utilisation and allocation policy framework of the government. This means that the government —which is the owner of the gas — will have the last word on the gas pricing and utilisation.
Armed with the new agreement, the Anil Ambani group would now move the government seeking allocation of gas to its power plants, including its upcoming projects in Dadri.
“RNRL will now take appropriate steps requesting the Government of India for expeditious allocation of natural gas to facilitate implementation of the same,” RNRL told the exchanges.
The GSMA complies with the Gas Utilisation Policy and EGoM (empowered group of ministers) decisions, RIL said in a statement.
Official sources told HT that gas allocation will now be considered by the EGoM on gas pricing and “informal allocations” will be made to RPL’s upcoming power. They said gas allocations may now be made to RPL for gas-based capacity of 8,500 mw.
RPL currently has set up power capacity of 1,000 mw and plans to increase this to 34,000 mw in the next few years.
Under an earlier family pact, RNRL had sought to pay $2.34 per unit for 28 million units a day of gas from the KG-D6 block of RIL for 17 years. After the Supreme Court quashed the family pact, the two brothers reconciled their differences on May 23.