The Hindu Business Line : No mention of gas supply in scheme: Reliance

Mumbai, Aug. 6 If Reliance Industries Ltd had agreed to supply gas at $ 2.37 per mmbtu for 17 years to Mr Anil Ambani controlled Reliance Natural Resources Ltd it could have affected the company’s share price, said Mr Harish Salve, Senior counsel for RIL in Bombay High Court on Wednesday.

He was arguing before division bench of the court over sharing of natural gas from the Krishna-Godavari gas field between RIL and Reliance Natural Resources Ltd.

Currently there is restrain order on Reliance Industries Ltd by a single bench, which forbids it from selling natural gas from its KG basin gas fields to third parties.

Mr Salve said that RNRL had said in it submission before the court that if it does not get natural gas from RIL KG basin gas fields it could become a shell company. But RNRL company result show that they are doing well and they are even getting gas from others sources, he said.

Mr Salve said that the de-merger scheme which split the Reliance empire makes no mention of supplying gas to RNRL. It only mentions about arriving at a suitable arrangement between the two companies for gas supply, he said.

He said that RNRL has always placed its arguments based on the family MoU between the Ambani brothers. But the MoU document has never been placed the court.

RNRL, has always taken a stand that the MoU must be considered as base for the Gas Supply Master Agreement (GSMA). The arguments will continue on Thursday.

More Stories on : Courts/Legal Issues | Petroleum | Reliance Industries Ltd

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