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05-27-2010, 11:54 PM #1
Reliance Case : Natural Gas and Mutual Agreement
Till the death of Late Shri. Dhirubhai Ambani, the world has been seen that both Mukesh and Anil works with one mind. But many of us who were very closely to them already scared only because they recognized that it is not a famous pair of Ramayana i.e., Ram-Laxmana. And it happens.
After the death of Shri. Dhirubhai Ambani the volcanic discussions between them have been blown out. Many Political Leaders, Industrialists to an adopted brother of Ambaniís family; they all tried with their capability to make a compromise and frugality for three years. Finally, both brothers respect the words of their mother Smt. Kokilaben and agreed on the compromised documents she made. In 2005 they have singed a mutual agreement.
The important issue in the agreement what Smt. Kokilaben has been made is the distribution of Natural Gas found in a shovel of Krishna-Godawari. Reliance has got excavating rights of 42% or 56,000 squares Kms. of this area. Yeah! It is sufficient to know the importance of the Natural Gas. Agreed upon the mutual agreement what Smt. Kokilaben has been made; Reliance must deliver 2.8 Cr. British Thermal Units (MMBTO) of Gas for 17 years to Reliance Natural Resources. You know what? The price has been settled at $2.34 per million BTU. In future, Reliance refused to act upon the agreement and its conditions what they made with NTPC; and now the case filed at honorable court. In the meantime, it was the year 2005-2007. Reliance has been made $4.32 per million BTU and more than this with NTPC and many Gas Consumer Companies. Same time the prices of crude oil and natural gas has been burst with a roar in the International market. On the basis of these big figures Reliance demanded to increase the rates of natural gas up to the $4.32 per million BTU to the Government. On the presidency of todayís finance minister (former Defense Minister) Mr. Pranav Mukharji Empowered Group of Ministers has been set the rates on $4.205 per BTU. Not only they have been decided to take the review after every 5 years but also give the prime importance to set the order for gas distribution. Descending order has been set like Pesticide Industry, Power Generation Companies, Gas Distribution in Cities and Steel factories. At the beginning with the same system 4 Cr Cubic Meter per day distribution has been fixed. It has been increased for a long time without essential change up to 64 MMSCCMD and 30 MMSCCMD on impermanent basis.