The Hindu Business Line : Gas supply row: Possibility of Ambani brothers meeting emerges

Mumbai Aug. 21 The Bombay High Court hearing on Thursday on the gas supply dispute between the Anil-Ambani controlled Reliance Natural Resources Ltd and Mukesh Ambani’s Reliance Industries Ltd led to discussions on the possibility of the two brothers personally meeting for an early settlement of the dispute.

One of the judges on the Bench, Justice Mr J.N. Patel, noted that the dispute over gas supply between the two corporate entities is one that might affect the economy. Why could not the brothers approach their mother, Mrs. Kokilaben Ambani, to settle the dispute, he asked.

Any time, anywhere

Mr Ram Jethmalani, counsel for RNRL, said Mr Anil Ambani was ready to meet his elder brother “any time, any place”.

Counsel for the Mukesh Ambani-controlled RIL, Mr Milind Sathe, said the request would be conveyed to his client and that he would have to revert on the matter.

The case relates to the dispute between the two companies over the Gas Supply Master Agreement for supply of natural gas from RIL’s Krishna Godavari basin to RNRL. The agreement was made after the split of the Reliance empire.

Submission

In another significant submission, Mr Jethmalani said RNRL should be allowed to sell the gas to external parties for three years, as it could not get ready with its plants for want of a bankable gas supply agreement with RIL. RNRL should be allowed to trade the gas for three years till its plants are ready.

Alternatively, RNRL’s counsel suggested that the company could explore the possibility of identifying idle power plants, with which it could either tie up or take on lease, for use of the gas.

The gas pact case has been adjourned till September 1, 2008.

Related Stories:
Ambani split: ‘Onus on RNRL to make MoU public’
‘Sharing gas from K-G would cost Reliance $1 b a year’

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