By IANS,
Mumbai : Anil Ambani-promoted Reliance Natural Resources Ltd (RNRL) Wednesday told the Bombay High Court that under the memorandum of understanding (MoU) signed with Reliance Industries Ltd (RIL), gas from the Krishna-Godavari (KG) basin has to be given to it on the same terms as the National Thermal Power Corporation (NTPC).
The MoU records the arrangement between Anil Ambani and RIL chief Mukesh Ambani as part of the demerger scheme of the Reliance group founded by their father Dhirubhai Ambani, and also notes what needed to be done in future.
Last week, part of the much talked about MoU between the Ambani brothers was placed in the high court. RNRL is relying on this MoU in its case against RIL over terms for the supply of gas for its power projects.
The KG-D6 dispute revolves around a pact between RNRL and RIL on which firm has the rights over the gas supplies and at what price.
An earlier interim order, in which the court restrained RIL from selling the gas or from entering into any contract with a third party, has lapsed. RIL was subsequently planning to start production from the basin.
The court had also restrained RIL from entering into contracts to sell the gas from this basin – known in official jargon as KG-D6 gas – with companies other than RNRL and the state-run National Thermal Power Corp (NTPC).
It had also asked the two sides to settle the dispute within four months, but they failed to reach an agreement within the stipulated timeframe.
RNRL has claimed at least half of the 80 million standard cubic metres of gas per day that is envisaged from the fields off the Andhra Pradesh coast – said to be the country’s biggest source of hydrocarbons today.