High Court asks Ambanis to frame new gas pact

The Bombay High Court on Monday ordered Mukesh Ambani-owned Reliance Industries Ltd, India’s largest company, to sell natural gas to brother Anil Ambani’s Reliance Natural Resources Ltd at a price that is 44% lower than the price proposed by the government earlier.

The order could significantly impact the contours of the natural gas economy in the country. RIL has been asked to supply natural gas to RNRL for 17 years at $2.34 per million British thermal units. RNRL, however, cannot trade the gas but can use it as raw material in its power projects. Natural gas accounts for about 18% of the total energy-mix of the Indian economy.

An RIL spokesperson said: “The full text of the judgment of the honourable High Court has been received by us and is being reviewed by us.

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Cement firms press alarm bell as topline melts

The 204 million tonne per annum cement industry in India is going through difficult times, as it faces double trouble with topline and operating margins both reeling under pressure.

Cement majors including ACC, UltraTech, Ambuja Cements and Binani Cement, among others, foresee tough times ahead. Significant raw material pressure and government control on cement prices have resulted in a negative growth in the bottomline and topline for these companies.

ACC Ltd, while declaring its Q3 results for the current year said, “We foresee challenging times ahead, in respect of markets, investments and input costs. While GDP growth targets for the country are being moderated to around 6.5% to 7%, ACC is of the view that growth of cement consumption in the coming months, particularly in the housing sector,may decline.”

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