RIL-RNRL may reach gas deal in two weeks
Following the Supreme Court ruling in the first week of May and the signing of a new non-compete agreement last Sunday, the Ambani brothers are expected to reach a gas supply agreement in the next two weeks.Â
The agreement is being negotiated between officials of the two companies, and it is expected that the Mukesh Ambani-controlled Reliance Industries will supply gas for 10 years from 2012 to power plants run by his younger brother Anil.
After the bitter corporate battle fought between the brothers in diffrerent courts, the brothers had unexpectedly called a truce on Sunday by ending a non-competition agreement that was a source of acrimony between them.Â
Earlier this month, the apex court had given a ruling in favour of Mukesh in a gas pricing dispute, with the court ordering the brothers to renegotiate within six weeks a private natural gas supply contract and gave the government control over setting gas prices.
News reports said there was a possibility that Reliance Industries may pick up significant minority stakes in gas-based power plants owned by the Anil Ambani group.
A spokesman for Reliance Industries said he had no comment on the report, while Anil Dhirubhai Ambani Group could not be immediately reached. – Reuters
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