Dadri Plant Is On

The Bombay High Court upheld RNRL’s right to receive the gas at the much lower pre-determined price

Anil Ambani has won the battle, for now. His faith in the validity of a contractual agreements has come good. In the days before the Ambani brothers split, there was a contractual agreement to supply gas for the power station at Dadri, UP, at a pre-determined price, from the Krishna Godavari Basin. However, circumstances changed and the international price of gas also escalated. Anil Ambani still wanted Mukesh Ambani to stick to the agreement. The Bombay High Court upheld the right of Anil Ambani’s Reliance Natural Resources Ltd (RNRL) to receive the gas at the pre-determined price (of $2.34 per million British thermal unit), far lower than the government-approved price which Mukesh Ambani was keen on. Anil Ambani’s firm will get this supply over 17 years as per the verdict. However, the last may not have been heard on this agreement. A battery of lawyers hired by Mukesh Ambani has approached the Supreme Court. The ball is still in play.

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