Mumbai: India’s Reliance Industries Ltd said on Tuesday it could not sign a gas supply agreement with former group firm Reliance Natural Resources Ltd as there was no clarity on government approval for the terms.
Reliance Industries, India’s top listed firm and headed by billionaire Mukesh Ambani, said in a court case concerning the agreement that it wanted the terms such as price, quantity and tenure to be subject to government approval.
“As there is lack of clarity on this aspect in the judgment, our position remains we cannot sign any agreement without the approval of the government ...,” Reliance said in a statement, in which it referred to a letter sent to Reliance Natural.
An Indian court in mid-June ruled that Reliance Industries and Reliance Natural Resources, headed by Mukesh’s brother Anil Ambani, should enter into a supply agreement.
Reliance was asked to supply gas to Reliance Natural at nearly half the price of an interim ruling, the latter’s lawyer had said.
Ahead of the announcement Reliance shares fell 2.95% to Rs2,023.35 and Reliance Natural shares tumbled 7.7% to Rs83.95 in a Mumbai market that