i Develop Stocks Advisory

RIL signs MoUs with 9 fertilizer & power cos Reliance Industries Limited has signed agreements with 9 fertilizer and power companies for gas sales from its field in the KG basin over the past 3 months. The MoUs were signed with Nagarjuna Fertilizers, GVK Industries, Konaseema Power, Kribhco, Chambal Fertilizers, IFFCO, Torrent Power, TATA Power and Rashtriya Chemicals & Fertilizers. On May 7th 2008, Bombay High Court maintained the status quo by restraining RIL from selling gas to third parties to protect RNRL's interests, but did not mention anything about informal agreements, which allows RIL to sign MoUs. These MoUs will be converted into commercial agreements only if the court order is favorable. RIL plans to sell about 30 million standard cubic meters per day of gas to selected companies when it starts production. As RIL plans to produce 40 million standard cubic meters per day at the initial stage, there is room for some more agreements. An additional 10 million standard cubic meters per day gas will be supplied to the highest bidders after the court order.