In The Pipeline, On The Morrow
Grey areas in the next round of Anil vs Mukesh
- Price The $4.2/mmBtu price ceiling is due for revision in 2012. Will the government then step in, or let market forces discover end price?
- Gas Allocation Changes required in government policy for Anil to get committed supply of gas for his greenfield power plant.
- Tenure The 17-year tenure demand will not be respected. Under new policy, only five-year pacts are being signed.
- Quantity Government will have to do a balancing act to assure supplies. Anil’s demand for 28mmscmd will not be met.
- The Future SC hasn’t commented on Anil’s right to seek 40% of RIL’s existing and future E&P discoveries. Leaves door open for Anil tonegotiate.
- Arbitration If all these issues aren’t resolved, Anil will seek implementation of MoU as...