Should Reliance be Granted their appeal?
India's largest non-state oil company, Reliance Industries, today appealed to the Mumbai High Court against an order limiting its gas sales to NTPC and Reliance Natural Resources, India's largest power generator.
The company is seekign a stay on an order than stopped it from negotiations enabling the sale of gas to companies other than NTPC, stated spokesperson, Tushar Pania. The appeal is due to be heard on July 5th.
Reliance Natural negotiates fuel supply contracts for Reliance Energy, Mumbai's main electricity supplier to retail customers. Both companies are run by chairman, Mukesh Ambani's younger brother, Anil Ambani. The two settled a family dispute by agreeing that ownership of the family business would be split. Mukesh is responsible for the Oil and Chemical Business whilst Anil oversee's the power, cell-phone and financial services departments.
Mumbai-based Reliance Industries wants higher prices and more customers for the gas it is currently drilling in the Krishna Godavari basin off the east coast of India. The Mumbai High Court stated that the company can only sell to NTPC and Reliance Natural Resources as was agreed prior to their discovery of the basin.
Should Reliance be granted their appeal and have the current restrictions lifted? Or, are these restrictions necessary to maintain an equality among power companies?
The company is seekign a stay on an order than stopped it from negotiations enabling the sale of gas to companies other than NTPC, stated spokesperson, Tushar Pania. The appeal is due to be heard on July 5th.
Reliance Natural negotiates fuel supply contracts for Reliance Energy, Mumbai's main electricity supplier to retail customers. Both companies are run by chairman, Mukesh Ambani's younger brother, Anil Ambani. The two settled a family dispute by agreeing that ownership of the family business would be split. Mukesh is responsible for the Oil and Chemical Business whilst Anil oversee's the power, cell-phone and financial services departments.
Mumbai-based Reliance Industries wants higher prices and more customers for the gas it is currently drilling in the Krishna Godavari basin off the east coast of India. The Mumbai High Court stated that the company can only sell to NTPC and Reliance Natural Resources as was agreed prior to their discovery of the basin.
Should Reliance be granted their appeal and have the current restrictions lifted? Or, are these restrictions necessary to maintain an equality among power companies?
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