×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

RNRL ready to renegotiate, says Anil Ambani

RNRL ready to renegotiate, says Anil Ambani
PTI
Comment E-mail Print Share
First Published: Fri, May 07 2010. 04 14 PM IST
Updated: Fri, May 07 2010. 04 14 PM IST
New Delhi: ADAG chairman Anil Ambani on Friday said his group had no immediate plans to seek review of the Supreme Court verdict that rejected cheap gas to group firm RNRL from Mukesh Ambani-led RIL.
“RNRL looks forward to an expeditious and successful renegotiations with RIL within the stipulated period of six weeks to secure gas supply for the group’s power plants in line with the Supreme Court order,” Ambani told reporters shortly after the judgement.
In the dispute, where RNRL sought gas at a concessional price of $2.34 per mmBtu as against the government approved $4.20 per mmBtu, the Supreme Court said the government has the last word on pricing and usage.
It also asked RIL and RNRL to renegotiate gas supply terms within six weeks.
“RNRL has currently no plans to file a review petition in the Supreme Court,” Ambani said.
Anil Ambani, who left the court without taking any questions from reporters after the judgement was pronounced, said that the court has safeguarded the interests of 25 lakh shareholders of RNRL by issuing guidelines for expeditious finalisation of gas supply agreement.
“By a majority judgement, the Supreme Court has upheld RNRL’s case that the company petition filed by RNRL as maintainable and has upheld the powers of the court to modify the scheme and make it workable,” he said.
Ambani said that the apex court has also acknowledged that the 18 June, 2005 MoU was basis for the business reorganisation of RIL.
“The court has also directed that suitable arrangements for gas supply should not only be suitable to RIL but also the shareholders of RNRL, whose interests have to be fully protected,” he said.
RNRL is seeking 28 mmscmd of gas from RIL’s KG-D6 fields for group firm Reliance Power’s proposed power plant in Dadri, Uttar Pradesh.
Anil Ambani’s initial comments on RIL-RNRL SC judgement:
• We respect the judgment of the Hon’ble Supreme Court and note that the Supreme Court has safeguarded the interests of over 25 lakh RNRL shareholders by giving the guidelines for an expeditious finalisation of the gas supply agreement between RIL and RNRL.
• By a majority judgment, the Hon’ble Supreme Court has upheld RNRL’s case that the company petition filed by RNRL as maintainable and has upheld the powers of the court to modify the scheme and to make it workable.
• The Hon’ble Supreme Court has also upheld that the MoU signed on the 18th June 2005 formed the backdrop of the Scheme and is the guiding force and the basis of the scheme of arrangements for business reorganization of RIL.
• The Hon’ble Court has also directed that suitable arrangements for gas supply should not only be suitable to RIL but also the shareholders of RNRL whose interests have to be fully protected.
• RNRL looks forward to an expeditious and successful renegotiations with RIL within the stipulated period of six weeks to secure gas supply for the Group’s power plants in line with the Supreme Court order.
• RNRL has currently no plans to file a review petition in the Supreme Court.
• At Reliance Power, we remain committed to emerging as India’s largest power producer, with fast track execution of over 35,000 MW of greenfield power generation capacity, and will continue to work towards the all-round development of the power sector in India.
• Reliance Power’s gas based power projects will provide 8000 MW of clean green power and the Government of India has already rightly recognized that consumption of natural gas for the power sector as the second highest priority for the nation as per its Gas utilization policy.
Comment E-mail Print Share
First Published: Fri, May 07 2010. 04 14 PM IST