Ambani brothers at a conference on Sunday to reconciliate for gas deal

New Delhi – The Economic Times on Thursday reported that the Energy giants the Reliance Industries  Ltd (RIL) and the Reliance Natural Resources Ltd will imminently sign a gas supply agreement in 15 days, citing a patch up between the Ambani brothers.

According to sources, the agreement that is being negotiated between the two giant companies reflects that the eldest brother Mr. Mukesh Ambani, the CEO of the Reliance Industries Ltd (RIL) aims to supply gas to the power plants run by his younger brother Mr. Anil Ambani, starting from 2012 for 10 years.

Although after a family feud that split the brothers five years back, it was on Sunday that a pact was initiated to end the non-competition agreement that was a reason of acrimony between the two brothers. It was earlier this month, when Anil Ambani lost the case to Mukesh Ambani at Supreme Court regarding the gas pricing dispute, then the court intervened with a renegotiation order that lay that the duo come up with a private natural gas supply contract within six weeks, that would give the government control over gas pricing.

According to economists, there is a heavy possibility that Mukesh Ambani’s Reliance Industries may pick some important minority stakes in the gas-based power plants that are owned by Anil Ambani.

[Source – Reuters]