SC may deliver verdict tomorrow on RIL-RNRL gas dispute

The Supreme Court is likely to deliver tomorrow its verdict on the gas pricing and supply dispute between energy companies RIL and RNRL.

A three-judge bench headed by Chief Justice K G Balakrishnan, who will be demitting office on May 11, had reserved its judgement in the lawsuit after arguments concluded on December 18.

The dispute between Reliance Industries (RIL) and Reliance Natural Resources Ltd (RNRL), the companies led by billionaire brothers Mukesh Ambani and Anil Ambani, is over supply of 28 million cubic meter of gas a day to RNRL by RIL.

RNRL is seeking gas from RIL's KG-D6 gas fields at $2.34 per mmBtu, 44 per cent lower than the government set price, for its proposed 7,800 MW power plant at Dadri.

RIL's contention is that it cannot sell gas at a price less than $4.20 per mmBtu as set by the government and to customers other than those identified in accordance with the Gas Utilisation Policy (GUP).

The Bombay High Court had last year upheld RNRL's claim for gas as made out in a family agreement that split the Reliance business empire between the two brothers.

The Apex court heard the case for 26 days since October 20. It also witnessed the recusal of Justice R V Raveendran from the Bench after hearing the matter for six days on the ground that he held shares of both RIL and RNRL.