Anil-Mukesh Ambani Sign New Deal, Gas Dispute Settlement In Sight
Burying their disputes, the respective Reliance groups headed by brothers Mukesh and Anil Ambani stated that they have signed up a new and simpler non-compete agreement, which will assist them resolve the Krishna-Godavari gas clash.
In a declaration, the Anil Reliance Dhirubhai Ambani group said, "These developments would eliminate any room for any further disputes between the two groups on matters relating to the scope and interpretation of non-compete obligations."
"All existing non-compete agreements between the two groups executed in January 2006 stand cancelled," the group said.
The group also said that the focus was now on an early cooperation of the gas purchase deal as directed by the Supreme Court.
The group added that the terminating the subsisting non-compete deal will offer superior operational and financial flexibility to both Reliance groups and greater capability to take part in growth segments like oil, petrochemicals, telecom, power and financial services.
"However, Reliance Industries Ltd (led by Mukesh Ambani) has agreed not to enter the gas-based power generation business for the period upto March 31, 2022. An appropriate exception has been made in respect of its captive gas based power plants."
Yesterday's development comes after the SC order May 7, which said that re-negotiation of the deal on the supply and pricing of natural gas from the Krishna-Godavari basin between Reliance Natural Resources and Reliance Industries.
The deal between Anil & Mukesh concerned the price, quantity and tenure of gas supplies by Reliance Industries. It called for 28 million units of gas a day to be sold to Reliance Natural Resources at USD 2.34 per unit for 17 years. (With Inputs from Agencies)