Anil, Mukesh Ambani groups sign gas deal as directed by SC

Mumbai, June 25 (PTI) An Anil Ambani group firm Friday
announced that it signed an agreement for availing of gas from
Mukesh Ambani-led RIL in accordance with a Supreme Court of
India direction, but supply will be subject to government
policy.
The announcement of the deal comes within weeks of the
warring brothers signing a truce agreement for creating a
"harmonious environment of cooperation and collaboration"
between their respective groups.
Shortly after the deal was signed Friday between Mukesh-
led Reliance Industries Ltd and Anil group firm Reliance
Natural Resources Ltd , the agreement was submitted
to the government for necessary action, Oil Ministry sources
said but clarified that neither any quantity, duration of gas
supply, specific project nor price was mentioned.
Although neither sides gave details of the revised gas
supply agreement, sources in RNRL said that it is for a period
of 17 years for projects totalling 8,400 MW at a government
determined price of USD 4.2 per mmBtu.
When contacted, RIL spokesperson declined to give details
saying that the contract was as per the direction of the
Supreme Court and in accordance with government's policies.
The government has fixed a price of USD 4.2 per mmbtu for
five years for gas from RIL's Krishna Godavari D-6 fields.
The government sources further clarified that it was the
master agreement about the intent to supply gas and any
specific details ranging from pricing to tenure and projects
could be contained only in GSPA.
It may be recalled that only last week the oil ministry
officials were reported to have said that any gas supply to
Anil's group firm could be only closer to commissioning of any
project.
They, however, said today that it was for the Empowered
Group of Ministers to see if an exception can be made for Anil
Ambani group and gas could be reserved for his project.
RNRL had gone to court against RIL in 2006, seeking 28
mmscmd of gas for its proposed Dadri plant at a rate of USD
2.34 per mmBtu - a demand which was rejected by the Supreme
Court citing that government had the last word on utilisation
and pricing of gas.
The Indian government fixed price for gas from RIL's
KG-D6 fields is USD 4.20 per mmBtu.
"With legal dispute (over supply and pricing of natural
gas from RIL's Krishna Godavari basin fields to Anil Ambani
Group's power plants) behind us, we look forward to a
harmonious and constructive relationship with Anil Dhirubhai
Ambani Group (ADAG)," Mukesh Ambani had said at RIL's Annual
General Meeting on June 18.
He had also said that "as and when the power plants of
ADAG are ready to receive gas, we would commence supplies to
them subject to government granting allocation." MORE PTI ANZ
KAB


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