Reliance Industries Ltd., or RIL, and Reliance Natural Resources Ltd. or RNRL, may enter into a new gas supply and purchase agreement in two week's time, say reports quoting a source familiar with the development.
In case the Indian government approves the deal, it would ensure gas to power plants owned by Anil Ambani's companies for 10 years commencing 2012. The report added that RNRL might get gas at $4.23 till 2014, but silent about the price that would be charged after that period.
The two brothers on Sunday agreed to cancel their 2006 non-compete agreements, paving way to reach a consensus regarding their gas supply agreement. The cancellation comes after the Supreme Court overruled a private pact between the two companies for supply of gas from the RIL-operated Krishna Godavari (KG) D6 basin to RNRL at $2.34/million metric British thermal units.
The court said gas must be supplied to RNRL at the government-set price of $4.20/mmbtu.
For comments and feedback: editorial@rttnews.com