Court asks to renegotiate gas supply terms
Anil Dhirubahi Ambani Group Chairman Anil Ambani on Friday said that his group had no immediate plans to file an review petition in the Supreme Court that had rejected the claims of the company for cheap gas to its firm Reliance Natural Resources Limited (RNRL) from Mukesh Ambani-led Reliance Industries Limited (RIL).
Talking to media persons through a conference call and taking no questions, Mr. Ambani said RNRL looked forward to an expeditious and successful renegotiation with RIL within the stipulated period of six weeks to secure gas supply for the group's power plants in line with the Supreme Court order.
The Supreme Court said the government had the last word on pricing and usage. It also asked RIL and RNRL to renegotiate gas supply terms within six weeks.
“RNRL has currently no plans to file a review petition in the Supreme Court,” Mr. Ambani, who was present in the court when the verdict was announced, said.
Mr. Ambani said the court had safeguarded the interests of 25 lakh shareholders of RNRL by issuing guidelines for expeditious finalisation of gas supply agreement.
“By a majority judgment, the Supreme Court has upheld RNRL's case that the company petition filed by RNRL as maintainable and has upheld the powers of the court to modify the scheme and make it workable,” he said. Mr. Ambani said the apex court had also acknowledged that the June 18, 2005, MoU was the basis for the business re-organisation of RIL. “The court has also directed that suitable arrangements for gas supply should not only be suitable to RIL but also the shareholders of RNRL, whose interests have to be fully protected,” he said.
RNRL is seeking 28 million standard cubic metres per day (mscmd) of gas from RIL's KG-D6 fields for group firm Reliance Power's proposed power plant in Dadri, Uttar Pradesh.