Good if Ambanis resolve differences amicably: FM

Finance Minister Pranab Mukherjee on Wednesday hoped that Mukesh and Anil Ambani would be able to sort out their differences amicably for the Indian market's sake, but said no one can say what would happen.

"I do not know what would happen because they are too big. They have substantial influence over the Indian market, therefore it is better that they sort out among themselves amicably. But, after all it is for them to decide," he told PTI when asked if he saw the dispute being resolved out of court.

"We may express our views and desires, but I do not know what would happen," said Mukherjee.

Incidentally, the Supreme Court too asked the Ambanis on Wednesday why they cannot settle their dispute over gas supply through arbitration or mediation.

The Supreme Court asked RIL if it would make profit from selling gas at a price committed to power NTPC, although it is substantially lower than the government-approved price, but there was no clear reply from the Mukesh Ambani-led firm.

Hearing the arguments of Reliance Industries, represented by counsel Harish Salve, the apex court raised the question: "You had bid $2.34 per mmBtu (for NTPC), you would have still made profits. Now when government is asking you to sell gas at $4.20 per mmBtu, then you will get huge profits."

In its response, RIL said that the price of the gas would not impact them as they are only recovering the cost and thereafter government gets the lion's share of profit.

The company also said that there is possibly no role for Kokilaben in mediation of the dispute, as the issue involved the production sharing contract and other technicalities.

The dispute pertains to RNRL's demand that it be supplied 28 mmscmd of gas from RIL's KG-D6 gas fields at a price of $2.34 per mmBtu agreed in a 2005 family MoU overseen by Ambani family matriarch Kokilaben.

RIL, however, contends that it cannot do so in view of the government policy, which in 2007 approved $4.20 per mmBtu as price for KG-D6 gas.

Salve said: "If RNRL is asking me to give gas at a lower price, then government will be debiting my account and I am recovering a lesser amount...I have no control on gas, price and choice of customers."