RIL files petition with Supreme Court on gas judgement.
MUMBAI Eoe1/4" Mukesh AmbaniEoe1/4aos Reliance Industries (RIL) said it filed a petition to the Supreme Court challenging a lower court order to supply natural gas to Reliance Natural Resources at a discount to the government-fixed rate.
Reliance Industries said in its petition that it canEoe1/4aot sell the gas from its Krishna Godavari field at a price lower than the $4.2 per million British thermal units set by the government. Company spokesman Tushar Pania confirmed that the petition had been filed yesterday and declined to comment further.The Bombay High Court ordered Reliance Industries, IndiaEoe1/4aos most valuable company, on June 15 to sell the gas to Anil AmbaniEoe1/4aos Reliance Natural Resources for 44 per cent less than the government-set price. The companies were asked to reach an agreement within a month, based on the terms of a memorandum of understanding signed in June 2005.
The agreement required Reliance Industries to supply 28 million cubic metres of gas per day at $2.34 per million British thermal units for 17 years, Mukul Rohatgi, counsel for Reliance Natural, said June 15.
The high court had given a clear and unambiguous finding with respect to the price, quantity, tenure and key terms of the gas supply, Reliance Natural said in a separate petition filed at the Supreme Court on Friday seeking implementation of the order.The dispute was sparked by the splitting of the Ambani family empire in 2005. The court temporarily lifted a ban in January on gas sales from Reliance IndustriesEoe1/4ao largest field, paving the way for supplies to fuel-starved fertiliser and power companies, designated by the government as priority customers.
Reliance Industries closed 0.8 per cent higher at Rs2,027.65 on Friday. The stock has climbed 64 per cent this year, compared with the 55 per cent gain in the benchmark Sensitive Index.
Reliance Natural gained Rs6.8 per cent to close Rs86.70 on Friday and has advanced 52 per cent this year.
The gas at the field operated by RIL is Eoe1/4Eonational property,Eoe1/4A[yen] Oil Minister Murli Deora said on June 22.
Muscat Press and Publishing House SAOC 2009
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|Publication:||Times of Oman (Muscat, Oman)|
|Date:||Jul 6, 2009|
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