RNRL – RNRL News – Reliance Natural Resources Ltd – RNRL wins over RIL in Gas Dispute case
RNRL (Reliance Natural Resources Ltd) has won over RIL in Gas Dispute case. Bombay High Court today has ruled that RNRL eill get assured Gas supply of 28 mmscmd from RIL for 17 years at 2.34$ .
Gas Supply from Krishna-godavari is to be used for Dadri Power Plant at UP. GSMA came into existence after Demerger of Reliance Group.
In December 2006, RNRL moved the Bombay High Court asking it to compel RIL to honour the gas agreement. Justice Anup Mohta, who heard the case, asked the companies to settle the matter internally under the June 2005 family agreement. The judge also restrained RIL from selling gas to third parties till the final order.
Unable to agree on the price, terms and quantity of gas, both firms approached the division bench of the Bombay High Court against the order of the single bench in early 2008. The hearing of the matter continued till February 2009. Thereafter, the division bench came out with an interim order allowing RIL to sell gas to third parties. The interim verdict also mentioned that RIL’s gas agreement with others would be subject to the court’s final order.
The basic argument in the RIL-RNRL case pertains to the pricing and quantum of gas. During the course of hearing, RNRL made it clear that it wanted 28 million metric standard cubic meters per day of gas for 17 years for $2.34 per mmBtu , while RIL argued that it could not sell gas below the government-approved price of $4.2 per mmBtu.
Source Courtesy From - DPA - ANI - earthtimes.org -
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