RNRL Demands Rs 50k Cr To Scrap Agreement With RIL

On Tuesday, Anil Ambani promoted Reliance Natural Resources (RNRL) had demanded Rs 50,000 crore from MukeshAmbani who is the owner of Reliance Industries (RIL) to scrap the gas sale master agreement (GSMA) signed between the two companies.

At the Bombay High Court in the beginning of company’s argument over the supply of gas from the Krishna-Godavari Basin, RNRL counsel Mr. Mukul Rohatgi said, “Somebody decide that my demands are correct or else calculate and compensate me for the gas I should have got for 17 years.”

In Dadri, the power project was delayed because of the Mukesh Ambani-controlled company hasn’t assured them to supply the gas regularly, RNRL said.  
As per the GSMA, RNRL was permitted to a supply of 28 million cubic meters of gas per day from KG basin at a price of $2.34 per mmbtu for 17 years.

Rohatgi argued, “RIL is frustrating our scheme in putting up our power plant by claiming that it will not be able to supply 28 mscmd gas to us for 17 years.

We can’t set up a power plant for five years with an investment of Rs 30,000 crore unless we get an assurance of constant gas supply. RIL’s claim that they are not sure of the gas reserves is absolutely false. Their American exploration partner Niko has said the reserves are five times more than what they have quoted in the court.”

Ram Jethmalani, who is senior counsel for RNRL said, “RIL has prevented RNRL from raising funds and bringing its power plant on course. The GSMA is a useless piece of paper.” In records the GSMA is a non-bankable agreement commercially.

The family agreements (MoU) between two bothers are very well known by RLL and the court shall call for the MoU from them, as was said by Jethmalani.

Jethmalani further added that “The agreement thus, in effect, was signed between Mukesh Ambani and Mukesh Ambani as RIL and its subsidiary, RNRL, was controlled by Mukesh Ambani.” Till August 12th the matter was adjourned for continuation.  

Harish Salve who is the senior councel had argued on behalf of RIL and had termed the agreement between the brothers as a ‘ghost MoU’. He also said that RIL would lose approximately $1 billion (Rs 4,300 crore) if it sells gas to RNRL every year at the settled price of $2.34 per million British thermal unit (mBtu).