RNRL share prices went up over gas dispute verdict news

In a week, Supreme Court will give its verdict about the RIL vs RNRL gas dispute. With this news, share prices of Reliance Natural Resources (RNRL) went up. KG Balakrishnan, the Chief Justice who is overlooking this case is going to retire on May 11, 2010.

At 10:35 a.m. share prices of RNRL was at Rs.66.70 which advanced 7.06% to Rs.67.85 and Rs.61.50 low. On the other hand, share of Reliance Industries Limited (RIL) went down by 2.26% after the company released its quarterly results. Indiaserver.com reports:

RIL and RNRL have been fighting over the gas supply to RNRL from Krishna-Godavari basin gas fields of about 28 million units of gas at the cost per unit of $2.34 which belong to RIL as per the New Exploration or Licensing Policy (NELP).

Mukesh D. Ambani led Reliance Industries Limited is the largest private sector conglomerate with an annual turnover of $44.6 billion and profit of $3.6 billion as of March 2010. It was founded by Dhirubhai Ambani in 1966. Oil business is the core business of RIL. After the death of Dhirubhai Ambani the company was divided between Dhirubhai Ambani’s two sons- Anil Dhirubhai Ambani and Mukesh D. Ambani.

Reliance Natural Resources Limited was incorporated on March 24, 2000, under the Companies Act, 1956as Reliance Platform Communications.Com Private Limited. The status of the company changed from private limited to public limited on July 25, 2005. The company’s name has been changed to its present name under Fresh Certificate of Incorporation.

Sandeep Tandon Reliance top official passed away

Sandeep Tandon, a top official of Reliance Industries Ltd., passed away on March 17, 2010. Sandeep was sixty years old. He has been suffering from cancer for a long time. At the time of his death, Sandeep Tandon was in the U.S for treatment and died over there. He survived by his wife Anu Tandon, currently serving as a Congress MP from Unnao, and two sons- Sachin and Shalin.

A former Revenue Service Officer, Sandeep Tandon became the President of Taxation in RIL and helped Mukesh Ambani in handling tax related matters. He also overlooked legal documents and advised Mukesh on all overseas investments and handled liaison for RIL with the CBDT, CBEC, ED and DRI and other agencies. He has his own exclusive taxation and liaison office where his two sons also work.

It is believed that it was Sandeep Tandon, who helped Reliance in the 1980s when the company was accused of “working through front companies in tax havens.” At that time, he served in the Enforcement Directorate. After the case was closed, he went on premature retirement and joined Reliance as president of taxation. Mukesh’s younger brother, Anil Dhirubhai Ambani, never trusted Sandeep Tandon for he raided Anil’s wife, Tina Ambani’s house before she got married to Anil Ambani. Sandeep Tandon used to head four companies of the Reliance Group- Reliance Energy Ventures, Reliance Capital Ventures, Reliance Communication Ventures and Reliance Natural Resources. These companies were handed over to Anil Dhirubhai Ambani after the split.

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BIG Mobile Radio brings radio programs in seventeen languages

Now, you can enjoy radio in your own language anywhere in India. Reliance Media World Ltd.’s radio division, 92.7 BIG FM, entered into a partnership deal with OnMobile Global Ltd, the largest telecom VAS provider in India, to create a new service called BIG Mobile Radio. Under this service, for the first time, Indian mobile users would be able to listen to radio programs in seventeen languages anywhere in India. The service would become also available in other countries including Malaysia, Singapore, UAE, Bangladesh, Sri Lanka and Indonesia where there are large Indian communities. Telecom Talk reports:

This service will enable the BIG Mobile Radio experience to go from 45 cites to over 4500 cities and towns including rural areas in an ad-free format.

Apart from reaching a new audience, this service will allow users to listen to their favourite programmed channels regardless of their location. For example, even a Tamil listener in Mumbai will be able to listen to native-language programming on Big Mobile Radio.

BIG Mobile Radio will create special feed for its listeners including songs, Bollywood entertainment, jock talk, humor, health tips etc. Talking about the service, Mr. Rabe. T. Iyer. Business Head, Allied Businesses, Reliance Media World Ltd. said that through this partnership, 92.7 BIG FM intends to reach all over India and abroad and give people a test of home. The operators who would offer BIG Mobile Radio will be announced pretty soon.

Reliance Industries Find Oil in Cambay basin of India

It is good news not only for Reliance Industries but also for the Indian economy. The price of the share of the company has increased with this good news. Details are still not known and the company has not in from the media about what amount of oil is there. They have found the oil in Cambay basin area. They have given the name of well as "Dhirubhai 43”. This is the 43^rd time that Reliance Industries found oil in India.

It’s a good sign for the Indian economy because if the economy has to sustain high growth then the country needs a lot of fuel. In days heavily dependent on imports for oil and the government is desperately trying to find more oil and gas within the country.

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Reliance Industries is ready to sign agreement with NTPC

Reliance Industries agreed to supply gas to state run NTPC, the largest power generator of India. Reliance is ready to sign sales agreements with NTPC under which, the company will supply gas to NTPC from its Bay of Bengal KG-D6 field. Reliance sent letters to NTPC on June 26, 2009, in which it said that it was ready to sign supply agreement and supply gas for the Anta, Dadri, Faridabad plants of NTPC as per “government allocation priorities.” Reuters reports:

The government has directed Reliance to supply the gas to priority sectors such as fertilisers and power.

NTPC Chairman and Managing Director R. S. Sharma said this week the government had allocated 2.6 million metric standard cubic metres a day (mmscmd) of gas to NTPC at $4.2 per million metric British thermal unit (mmBtu) under the priority scheme.

However, NTPC refused to sign a purchase agreement because it believes that the agreement would compromise NTPC’s court case against RIL for failure to fulfill its 2004 tender.

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Mukesh Ambani and Anand Jain’s Mumbai SEZ project is in legal trouble

Another major struggle between powerful corporate house and poor farmers is looming on the horizon. Mukesh Ambani, Chairman and Managing Director, Reliance Industries and his childhood friend Anand Jain, promoter, Jai Corp., were planning to build a big Special Economic Zone stretching over 10,000 hectares of land near an upcoming port in Rewas, Maharashtra. The land acquisition process was overseen by Mumbai Special Economic Zone (MSL). Recently, the two firms filed a petition in the Supreme Court to stay the Section 4 of the Land Acquisition act of 1894. This act allows the State government to purchase the land for big projects. However, the Supreme Court denied their plea as this whole process goes against regular land acquisition procedure and the interest of the farmers whose lands would be acquired.

Over the years, Indian economy grew at an unprecedented rate but the benefit of that economic growth was not enjoyed by the hundreds and thousands of poor farmers living in villages all over India. You all know about the serious opposition Tata Automobiles faced when they wanted to build their Tata Nano plant in Singur. It is true that the Nano plant would create lots of jobs but the farmers who would have lost their lands would not get any job. The farmers know only one profession, that is farming and growing crops. After acquiring their lands, they would get some money but it would not help them to survive in future. Neither the companies who take over farm lands, nor the government, arrange any alternative profession or give any training to these farmers, so that they could support their families in future by engaging in some other professions. I am very happy with the decision given by the Supreme Court in this case. It is time Indian government and private organizations start giving serious thoughts about Indian farmers.

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