Thaindian News

Mumbai, June 18 (ANI): Reliance Industries Chairman and Managing Director Mukesh Ambani on Friday said his firm will supply natural gas to the Anil Dhirubhai Ambani Group’s power plants as and when they are ready to receive it.

Signaling a healing of the rift between him and his brother Anil, Mukesh told he 36th shareholders meeting: ” The RIL would supply gas to Anil Ambani Group in accordance with government policy.”

“The supplies, including the one proposed at Dadri near Delhi, will be subject to government approval, the allocation of the fuel, he added.

He also announced his group’s foray into the power sector.

“Power business remains a natural extension of the energy portfolio and would be the engine of its new growth,” he added.

Earlier, the Supreme Court had asked the group’s headed by the Ambani brothers to rework a gas supply contract keeping the government policy on pricing and allocation in mind.

Ambani, however, did not say when Reliance Industries would be entering into a new Gas Sales and Purchase Agreement (GSPA) with Anil’s Reliance Natural Resources Ltd (RNRL) as had been ordered by the apex court.

On May 7, the court had turned down a proposed to provide gas to theAnil-led RNRL from Reliance Industries Limited Krishna Godavari D-6 Basin at prices arrived at during a 2005 private family meeting and subsequent agreement.

Reliance Industries Limited had wanted to raise the price that was agreed upon by a family agreement in 2005 after the brothers decided to split the empire built by their father, Dhirubhai Ambani.

In 2007, the government said the agreed-upon rate of 2.34 dollars per unit was far too low.

Reliance Industries Limited said it had to raise his rates to 4.2 dollars per unit and follow the government’s orders, because it owns the gas, and that the Reliance Industries was just a contractor.

RNRL accused RIL of artificially inflating its costs and decreasing its output to make super normal profits. (ANI)