Business Daily from THE HINDU group of publications
Saturday, Aug 04, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Aug 04, 2007 ePaper |
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Corporate
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Corporate Disputes Industry & Economy - Petroleum
Our Bureau Mumbai, Aug. 3 The production sharing contract (PSC) between the Reliance Industries Ltd and the Union Government for the KG basin gas field has become the main pivot of argument in the ongoing legal battle between the Ambani brothers. Reliance Natural Resources Ltd (RNRL), led by Mr Anil Ambani, is fighting a case in Bombay High Court against, Mr Mukesh Ambani led Reliance Industries Ltd over gas supply for KG basin. RNRL is seeking changes in the gas supply master agreement, where RIL is a party to the agreement. Supply Agreement
On Thursday, Mr Harish Salve, counsel for RIL, argued that if RIL breaches the PSC, then the Government can cancel it. The PSC is the main framework under which RIL can supply gas to various customers, including RNRL. The RNRL had earlier contended that the PSC has no bearing on the gas supply agreement. Mr Salve argued that a suitable gas supply agreement between both the companies would also require Government’s approval as specified in the PSC. He also said, “RNRL has argued that without a proper gas supply agreement its gas-based power projects are not bankable. I believe that it is a figment of their (RNRL) imagination,” he said. RNRL in its earlier hearings had argued that a limitation on the liability, in the event of non-supply of gas from RIL was not acceptable. Mr Salve said that if there were no cap on the liability then RIL would have to supply gas at subsidised rates to RNRL for an indefinite period.
Related Stories: RNRL seeks changes in gas supply pact with Reliance Decision on KG gas pricing within a month Reliance says Anil Ambani co seeking gas for ‘trading in’ More Stories on : Corporate Disputes | Petroleum | Courts/Legal Issues | Reliance Industries Ltd
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