Anil writes morale boosting letter to group employees on SC verdict

Anil writes morale boosting letter to group employees on SC verdict

"We respect the judgement and note that the Supreme Court has safeguarded the interests of over 25 lakh RNRL shareholders by laying down guidelines for an expeditious finalisation of the gas supply agreement between RIL and RNRL," he wrote in an email to employees of Reliance-Anil Dhirubhai Ambani Group.

The Supreme Court on May 7 held that the government alone had the right to approve price of natural gas and fix its users while turning down Reliance Natural Resources Ltd's (RNRL) plea for 28 million cubic meters a day of gas from Mukesh Ambani-run Reliance Industries (RIL) at USD 2.34 per million British thermal unit, a rate 44 per cent lower than the government-approved price."...we are disappointed by the final outcome," Anil Ambani, Chairman of R-ADAG, wrote.

The court, however, asked both companies to renegotiate terms of gas supplies keeping the government policy in mind.RNRL based its claim for cheap gas on a 2005 private family agreement that split the Dhirubhai Ambani empire between the brothers.
Ambani said the Supreme Court had upheld RNRL's core position that the company petition was maintainable and the court had wide powers to modify the (demerger) scheme and to make it workable.

The court has held that "the MOU signed on June 18, 2005 formed the backdrop of the scheme, and is the guiding force and the basis of the scheme of arrangement for business reorganization of the Reliance group, including RIL's obligation to supply gas to RNRL," he wrote. Also, "the gas supply arrangements need to be suitable not only to RIL, but also the shareholders of RNRL."

The junior of the Ambani siblings said his group pursued the legal remedy as "a last resort" to safeguard the interests of all stakeholders."We now look forward to an expeditious and successful renegotiation with RIL, within the stipulated period of six weeks, to secure gas supply for the Group's power plants in line with the Supreme Court order," he said.

Reliance Power's gas based power projects will provide 8,000 MW of clean green power and is committed to emerging as India's largest private sector power producer, with fast track execution of over 35,000 MW of greenfield power generation capacity.
He thanked Group employees and their families for their unflinching support and commitment and expressed confidence that they would move ahead with even greater passion, resolve, and commitment.