What is the RIL-RNRL court fight all about

Mumbai: Reliance has nearly 80 mmscmd of gas, of which 40 mmscmd of gas was reserved for NTPC and RNRL. The issue is not the volume of gas that will go to RNRL from RIL. The main issue is the pricing at which the gas should be transferred.

That''s where the courts said that they cannot comment on the commercial aspects of the gas. The court also said that the entire gas quota is subject to approval of the government.

A month back, the EGOM on KG gas came out with a gas pricing of $4.20/mmbtu. And that is pricing at which RIL is supposed to give gas to fertiliser companies and power companies. Now, the entire issue is about renegotiation of gas pricing, for which the court has given four months to RIL and RNRL.

As per the initial agreement which RNRL claims, the price was around $2.34/mmbtu. is against the EGOM pricing of $4.20/mmbtu.

This is where the renegotiation has to happen.

See: Bombay high court asks Reliance Industries Ltd and Reliance Natural Resources Ltd, to rework gas agreement