Mumbai: The Bombay high court has directed Reliance Industries and Reliance Natural Resources to enter into a gas supply agreement within a month, a lawyer for Reliance Natural said.
The court asked Reliance Industries to supply 28 million metric cubic metres a day for 17 years at $2.34 per million metric British thermal unit, Mahesh Jethmalani said on Monday after the court ruling.
“Within one month’s time we have to enter into an agreement ...,” he said.
Reliance Industries is controlled by billionaire Mukesh Ambani while Reliance Natural Resources is headed by estranged younger brother Anil Ambani.
On 30 January, the Bombay high court had issued an interim order saying Reliance Industries was allowed to sell gas at $4.2 per million British thermal units from its KG-D6 block in the Krishna Godavari basin off eastern India, pending a final judgement.
Shares in Reliance Industries fell as much as 6.1% after a court directed it to supply gas to Reliance Natural Resources at lower than market prices.
Shares in Reliance Natural soared as much as 23.4% to Rs107.70.
“Reliance Industries will have to supply gas at a rate lower than the rate fixed by the government. They are going to incur a lower profit for that much amount,” said DD Sharma, vice president at Anand Rathi Securities.