SC-AMBANI 2

"We have nothing to do in the private dispute between
the Ambani brothers," the Solicitor General said adding that
"the Production Sharing Contract is not the subject matter of
Government in the fight between the two brothers".

However, Rohatgi said Government had referred to the
terms of the PSC which was forced upon RNRL to "sabotage" its
gas contract.
The Ambani brothers are engaged in a bitter court
battle over the supply and price of the gas from KG Basin.
While RNRL is seeking gas at a committed price of USD
2.34 per unit, RIL says it cannot honour the commitment made
in the 2005 family agreement due to government's pricing and
gas policy.
Resuming the arguments, Rohatgi said RNRL has six
objections in the January 12, 2006 Gas Supply Master
Agreement (GSMA) which covered an uncertain tenure and pricing
issues.
The senior advocate said there is a limitation to the
liability clause which favours RIL.
He contended that the cost of production of gas was 90
cent and if it was sold to RNRL at the rate of USD 2.34, RIL
will make huge profit.
RNRL said RIL's demand to sell gas at USD 4.2O was
against public interest as it will hurt the power and
fertilizer sectors. PTI IB
MYR


The information contained in this electronic message and any attachments to this
message are intended for the exclusive
use of the addressee(s) and may contain proprietary, confidential or privileged
information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please
notify the sender immediately and destroy
all copies of this message and any attachments contained in it.