Revised gas supply agreement between Ambanis
Mumbai,Jun 25: A revised gas supply agreement finally was signed by the two Ambani brothers on Friday, Jun 25. The agreement between Mukesh Ambani-run Reliance Industries and his younger brother Anil—led RNRL paves the way for government to allocate gas to Anil Ambani group"s power plants.
The Supreme Court had asked the two groups to renegotiate the agreement based on its earlier ruling that government is the owner of the gas and hence, has the last word on its pricing and utilization.
Anil Ambani group, armed with the new agreement, would now approach to the government seeking allocation of gas to its power plants, including its upcoming projects in Dadri, Uttar Pradesh.
“Pursuant to the judgment of the Hon"ble Supreme Court dated May 7, 2010, RIL and RNRL have on Jun 25, 2010 signed a revised Gas Supply Master Agreement (GSMA)," RNRL said in a statement.
“RNRL will now take appropriate steps requesting the Government of India for expeditious allocation of natural gas to facilitate implementation of the same," said RNRL.
After the announcement in a subdued market, shares in Reliance Natural extended gains to more than 6 per cent.