The Hindu Business Line : RNRL moves apex court to make Reliance execute order

It has sought the court’s direction to Reliance Industries Ltd (RIL) to execute a bankable agreement in line with the Bombay High Court judgment in the Krishna-Godavari basin gas sharing case.

Meanwhile, RIL also filed a caveat in the Supreme Court on Friday to ensure that it is given a chance to explain itself in the case.

On June 15, the Bombay High Court asked Reliance Industries to supply 28 mscmd (million standard cubic metres a day) of gas from the Krishna-Godavari basin to RNRL for $2.34/mBtu (million British thermal unit), while directing RIL to arrive at a suitable supply agreement in one month with RNRL.

Gas pricing is the main point of contention between the two companies as RIL wants its supply priced at $4.2/mmBtu, which was decided by the Empowered Group of Ministers.

Under the family partition MoU between the two Ambani brothers, RNRL is entitled to 28 to 40 mscmd of natural gas from the RIL-controlled KG basin.

An RNRL media statement said that it had approached the Supreme Court to preserve and protect the interests of its over 25 lakh shareholders.

Clear findings

The company said the High Court had given clear and unambiguous findings with respect to the quantity (28 mscmd/40mscmd); the period of supply (17 years), the price ($2.34/mBtu) and other key terms.

The tenure, price and other key terms were the same as that of the gas supply contract awarded by NTPC to RIL after an international competitive bidding process conducted under the aegis of the Power Ministry.

The High Court order required RIL to sign a bankable agreement within 30 days. RIL has conveyed its reluctance to sign (any) agreement according to the court order.

Related Stories:
Reliance Ind to move apex court on gas to RNRL
HC order brings RIL gas pricing issue to the fore
RIL-RNRL dispute: Await more twists in the tale

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