RIL not to sign pact with RNRL on gas supply

Written by Agencies | Mumbai | Updated: Jul 1 2009, 01:39am hrs
Rejecting offer for talks, Mukesh Ambani-run Reliance Industries told Anil Ambani group firm RNRL on Tuesday that it would not sign any agreement on the gas supply issue without approval of the government.

RIL, which is believed to be preparing to move the Supreme Court early next month, in a communication to RNRL noted that it had been advised that there was lack of clarity in the judgement on the aspect of the government's role in the issue, sources in the know said quoting the letter.

"We cannot sign any agreement without approval of the government on price, quantity and tenure," the letter said, adding that RIL was still in the process of legal consultation and shall revert.

Yesterday, RNRL officials had waited in vain for a meeting they had proposed vide a letter dated June 25 with their counterparts in RIL.

The Bombay High Court had on June 15 given the two companies a month's time to work out firm gas volumes, price, timelines and other commercial details for sourcing the fuel from Krishna-Godavari basin fields.

The Court had also ruled that RIL should honour its commitment in the family split agreement to supply gas to RNRL.