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| RNRL invites RIL for talks on gas supply |
| Press Trust of India / New Delhi Jun 23, 2009, 18:25 IST |
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Within days of Bombay High Court asking Mukesh Ambani-run Reliance Industries (RIL) to supply gas to Reliance Natural Resources (RNRL), the Anil Ambani group firm has asked the other side for talks to suggest a way forward to firm up an agreement.
But RIL is yet to agree for a discussion on the grounds that it is studying the implication of the judgement.
The Bombay High Court had on June 15 given the two companies a month's time to work out a firm gas volumes, price, timelines and other commercial details for sourcing the fuel from Krishna Godavari basin fields.
Sources said RNRL has written a letter to Mukesh Ambani- run RIL seeking time and date for talks on the agreement.
The Bombay High Court had ruled that RIL should honour its commitment in the family split agreement to supply gas to RNRL. The terms, as per the MoU which split the Dhirubhai Ambani empire in 2005, were to be based on RIL's bid for NTPC tender.
When contacted, spokespersons of both companies declined comments but sources said RIL was studying the implications of the judgement before committing to a meeting with RNRL.
RNRL has already filed caveat in the Supreme Court to prevent any ex-parte order in case Mukesh Ambani's RIL was to appeal against the Bombay High Court order.
In the MoU that split Dhirubhai Ambani empire, the Mukesh Ambani-run firm had committed to supply 28 million standard cubic meters per day of gas to power plants of the group run by his younger brother for 17 years.
Mukesh had got petrochemicals, refining and oil and gas business while the power plants, telecommunication and financial services business had gone to Anil in the split.
The price in the MoU was the same as the one RIL had bid for a 2004 NTPC tender. RIL had bid to supply 12 mmscmd gas to the state-run firm at a delivered price of $2.97 per million British thermal unit. The landfall price was $2.34 per mmBtu.
However, RIL did not sign a gas sale-purchase agreement (GSPA) with NTPC over disputes on liability in case of default in supplies. The state-run firm has since taken RIL to court seeking 'performance' of the bid.
The Bombay High Court in its judgement asked the two brothers to take the help of their mother, if necessary, to arrive at a commercial contract for supply of gas. The terms they have to agree to includes the annual volumes, the year of beginning supplies, take-or-pay clause and a host of other similar commercial agreements leading to GSPA.
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