Tuesday, February 12, 2008

RIL, RNRL Continue To Differ On Gas Supply Agreement

Even four months after the Mumbai High Court asked the Reliance Industries and Reliance Natural Resources, led by estranged Ambani brothers Mukesh and Anil respectively, to renegotiate the gas purchase pact between them, the companies continue to differ on all key points. Justice AV Mohta last year had asked both parties to sit together and renegotiate the Gas Supply Master Agreement. However, filing appeals before the division bench on Monday, they said they differ on all key issues.

The dispute is over an agreement whereby Reliance Industries was to supply gas for Reliance Natural Resources from Krishna-Godavari basin. RNRL had challenged the existing Gas Supply Master Agreement saying it was unfair and sought modifications in it. RNRL wanted certainty of tenure and the quantity of gas. Court will hear the case on February 25. Meanwhile, the interim order of High Court restraining RIL from creating third party interest in the gas to the extent of RNRL''s claim will continue till then, through mutual understanding.

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