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RNRL may intervene in RIL-NTPC case

This article was posted on Jun 17, 2009 and is filed under Stock News

Close on the heels of the Bombay High Court’s gas supply judgement in its favour, Anil Ambani group firm Reliance Natural Resources (RNRL) is all set to intervene in another case related to gas supply between Mukesh Ambani-led RIL and state-run power producer NTPC.

“RNRL will intervene in the RIL-NTPC High Court matter,” a source familiar with the matter said.

Earlier this week, the Bombay High Court asked RIL to honour a 2005 family agreement to supply 28 million cubic meters per day of gas from its Krishna-Godavari basin fields at $2.34 per mmBtu for 17 years to RNRL.

As per the ruling, RIL has been asked to supply gas at a price 44 per cent lower than rates apporved by the government.

The price for RNRL was derived from the 2004 agreement between RIL and NTPC. However, this RIL-NTPC contract is also a subject matter of case before another bench of the Bombay High Court as RIL has said that the contract was not concluded.

source: Business-Standard

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