Anil Ambani group offers partial relief to RIL

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Anil Ambani group offers partial relief to RIL

This article was posted on Jan 19, 2009 and is filed under Stock News

Mumbai: Anil Ambani controlled Reliance Natural Resources on Monday said it is ready to let Reliance Industries start production of gas as long as it is sold only to NTPC and government companies.

“Let it be used by NTPC since they have a prior right (according to 2004 agreement) and also have existing power plants,” said Mukul Rohatgi, counsel for RNRL.

The concession came during arguments after RIL said it cannot hold back its gas which is due out in the next 30 to 45 days. Sale of gas to NTPC will also ensure immediate liquidity to RIL which has been pleading that it is on the verge of irreparable harm and injury due to a liquidity crunch.

RNRL pointed out that its right to the gas comes after that of NTPC. NTPC has a case in the Bombay High Court in which it has alleged that RIL is refusing to supply gas after bidding to do so in a tender process.

Rohatgi pointed out that by the time gas production picks up, the current dispute between RNRL and RIL would also have been resolved and the excess gas can also be sold without any delays.

Meanwhile, the court adjourned again today after RIL counsel fell sick. It wil reconvene on Thursday.

source: DNAindia

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