Shares of Anil Ambani promoted Reliance Natural Resources fell more than 6
per cent on Monday after the government said it will decide the sale price of natural gas produced from Reliance Industries' Krishna-Godavari (KG) basin.
At 2:15 pm on BSE, the RNRL share was down 6.43 per cent at Rs 46.55. The stock hit a high of Rs 50.70 and low of Rs 46 so far in trade. The stock hit a 52-week high of Rs 249.70 on January 9 and low of Rs 36.40 on Oct 27, 2008.
The government affidavit on the case RIL-RNRL gas dispute said, that the sale of gas at a price less than $4.20 per million metric British thermal unit is not envisaged as per the Empowered Group of Ministers' decision taken in accordance with Production Sharing Contract between government and Reliance Industries.
The government in the affidavit also states that selling price should be determined based on arm's length concept- where transaction is conducted purely on commercial terms.
As per the allocation policy, fertiliser plants will have the first claim followed by idle power plants and city gas distribution in that order.
The dispute between RIL and RNRL is over gas supply agreement pertaining to supply of natural gas from RIL's KG reserves to RNRL's power plants at a predetermined price.
RNRL has been laying claim on a portion of the gas reserves at a lower rate, citing a family agreement that formed the basis of a split between the estranged Ambani brothers in 2005.
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