RIL RNRL Gas Dispute: Not Yet Over
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Posted On :
Nov-11-2009
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Article Word Count :
486
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Highlighting the current situation of the RIL RNRL gas dispute, the events of and proceedings of this war between brothers is captured in herein. The future of this dispute lies in the decision of the supreme court on the 20th of October 2009.
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Anil Ambani has slugged it out with his older brother, Mukesh Ambani for four years and on 11th October 2009, apparently set the tone for reconciliation, expressing hope that all disputes with Mukesh could be discussed and resolved in a matter of weeks. But Mukesh Ambani’s Reliance Industries Ltd (RIL) said the dispute was not really a family matter, but one that can be decisively resolved only by the Supreme Court.
At the heart of the fight between the two brothers is Anil Ambani’s demand that RIL supply gas to his company Reliance Natural Resources Ltd (RNRL) at $2.34 per mmbtu. The Bombay High Court decided in RNRL’s favour, but RIL moved the Supreme Court on July 4 challenging this decision.
For last many years, Anil Ambani has indulged in many a malicious campaign against RIL and its chairman. These campaigns reached their nadir in recent months through a vicious series of advertisements, unprecedented in India’s corporate history. This was followed by Anil Ambani’s endeavor to rope in NTPC in Reliance’s gas dispute. Over the last few months many in the government, including the Prime Minister and the Finance Minister, have said the brothers must put an end to such acrimony.
The picture began looking grim for RNRL with the decision of the eGoM to ensure that the country’s gas prices are in line with the market prices by approving a formula — which yields a price of $4.20 per million British thermal unit (mBtu) for the next 5 years. Anil having had to agree with the approved rate of $4.20 per mBtu soon also agreed to pay the disputed marketing margin to Reliance Industries under protest and sought natural gas to its power plant when it resumes operations after a maintenance shutdown.
Despite these past events, RIL in its statement to the press said that, it welcomes Anil Ambani’s statement of reconciliation, and hopes that it is a positive change in the negative, calumnious and malafide campaign launched by R-ADAG against RIL. Mukesh Ambani said that this issue can be easily resolved, provided the proposal for reconciliation is anchored in good and honest intentions. According to RIL’s statement, the dispute under litigation is not merely a family matter, as Anil Ambani’s statement tries to make out to be. Another point that evokes a question is that, Anil Ambani, has yet again sought to communicate to RIL and its Chairman through the public domain, whereas he could have easily contacted his elder brother directly.
RIL in its statement indicated that, since national interests in terms of securing government’s revenue from the natural gas, the interests of RIL’s shareholders etc. are at stake transcend any private differences between two brothers or two corporate entities, can now only be decisively resolved by the decision of the Supreme Court of India. 20th October is the date towards looking for a conclusion to this issue.
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Article Source :
http://www.articleseen.com/Article_RIL RNRL Gas Dispute: Not Yet Over_5254.aspx
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Author Resource :
A low down on the RIL RNRL gas dispute with a detailed account of all the events of the last few months, in light of Mukesh Ambani’s, CMD of Reliance Industries Ltd., response to the reconciliatory offer made by Anil Ambani.
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Keywords :
RIL RNRL gas dispute, Mukesh Ambani, Reliance,
Category :
Business
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Business
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