Ambani brothers at loggerhead on gas supply deal

New Delhi, Nov 9: Anil Ambani-owned Reliance Natural Resources Ltd (RNRL) has alleged that Mukesh Ambani's Reliance Industries Ltd (RIL) has ''acted in a malafide manner to frustrate the gas deal'' reached by the two brothers in December last year.

The company has also moved the Bombay High Court requested it to give directions to RIL on implemetation of the gas supply deal.

In the application filed yesterday, the RNRL contended that RIL has malafide desire to keep gas supply for itself though this belongs to RNRL as part of the demerger.

It termed RIL's action on gas supply ''patently illegal'' and a ''breach of trust.'' The demerger agreement, which was signed in December last year, required RIL to supply 28 million standard cubic meters of gas per day at 2.34 dollars per million British thermal unit.

RNRL's move follows the decision of Pertoleum Ministry in July this year, rejecting the price making gas supplies to another Anil Ambani group firm Reliance Energy's proposed 7,480 MW Dadri power project in UP impossible.

The ministry had cited lack of price discovery and non-adherence to the arms length sales criterion required under production sharing contract, as the reasons for rejection.

The move came close to the RIL's decision to increase prices of natural gas to be supplied from the Krishna-Godavari basin. It had also proposed to raise the gas sale price to 4-4.5 dollars per million British thermal unit.

UNI