RNRL signs gas pact with RILBy IANS
Friday, June 25, 2010
MUMBAI - The Anil Ambani-promoted Reliance Natural Resources (RNRL) said Friday it has signed a revised gas supply agreement with the Mukesh Ambani-led Reliance Industries (RIL).
The agreement follows the Supreme Court ruling asking both sides to renegotiate and finalise a new gas sales deal as per the rules set by the government and subsequent assurance given by the elder Ambani to supply gas to the younger brother’s company.
“Pursuant to the judgment of the Supreme Court dated May 7, 2010, RIL and RNRL have on June 25, 2010 signed a revised gas supply master agreement (GSMA),” RNRL said in a statement to the Bombay Stock Exchange.
The company said it will now ask the government to expedite allocation of natural gas.
The RNRL statement, however, did not mention the price, tenure of supply and the quantity of gas, agreed with Reliance Industries.
At the annual general meeting of Reliance Industries June 18, Mukesh Ambani had assured gas supply to the Anil Ambani-controlled power plants.
“As and when the power plants of ADAG are ready, we will commence supplies subject to government granting allocations to these plants,” he had said.
At the Bombay Stock Exchange, both scrips rose immediately after the announcement. While RNRL moved to an intra-day high of Rs.68.65, up 7.5 percent from its previous close, the RIL stock went up 0.7 percent to Rs.1,058.90.
The deal came weeks after the two brothers terminated an earlier non-compete agreement, allowing the two groups to enter into any business or industry, other than gas-based power generation by Mukesh Ambani-led Reliance Industries for 12 years.