On Friday the Supreme Court announced its ruling in the dispute between Mukhesh Ambani’s RIL and Anil Ambani’s RNRL. It ruled that the two sides have to renegotiate their deal over gas supplies. The ruling also effectively gives the government control over the pricing of gas.
The judgment is bad news for RNRL, which wanted RIL to honour a private agreement to sell it 28 million standard cubic metres of gas for 17 years. That’s was at a low price of $2.34 per unit. But Friday’s judgment upholds the government’s higher price of $4.20 per unit.
The Budget Session of Parliament came to an end on Friday. The government played it safe by not introducing the Women’s Reservation Bill during the week. But it did introduce two other controversial bills. On Monday it brought in one which allows foreign universities to set up shop in India. And on Friday it introduced the nuclear civil liability bill. Also, after mounting opposition pressure, the government said it would consider recording people’s castes as part of the census.
Standard Chartered is looking for anchor investors for its Indian Depository Receipts or IDRs. Financial firms handling the bank’s IDR issue have started talking to 50 potentials including mutual fund houses, domestic banks and FIIs. Chartered expects to raise up to $750 million from its IDRs.