RIL-RNRL SAGA -- THE STORY

I have been reading in the papers about this story since quite a while now but i had lost track about the exact span of events in this family feud. So i did my bit of reasearch to find out the order in which the events have unfolded and summarised it in this blog

THE DISPUTE

When the Ambani brothers parted ways there was a demerger agreement known as the Gas Supply Master Agreement between Mukesh Ambani's RIL and Anil Ambani's RNRL in June

2005. The memorandum of understanding (MoU) clearly stated that Reliance Industries would sell gas at $2.34 per mmBtu (million metric British thermal unit) to RNRL for 17 years and 28 mmscd (standard cubic metres per day) of gas. By the gas supply master agreement ,RIL was supposed to supply natural gas from the Krishna-Godavari basin to RNRL, to be used for the Anil Ambani group's power generation plant at Dadri in UttarPradesh. The GSMA came into existence in January 2006, following the demerger of the Reliance group. But both the sides differed on its terms related to the quantity of gas to be supplied, price and quantity of supply.

In December 2006, RNRL moved the Bombay High Court asking it to compel RIL to honour the gas agreement. Justice Anup Mohta, who heard the case, asked the companies to settle the matter internally under the June 2005 family agreement. The judge also restrained RIL from selling gas to third parties till the final order. Unable to agree on the price, terms and quantity of gas, both firms approached the division bench of the Bombay High Court against the order of the single bench in early 2008. The hearing of the matter continued till February 2009.

RNRL's claim (owned by Anil Ambani) - It wants RIL to honour the agreement and supply gas at the predecided price.

RIL's counter argument (owned by Mukesh Ambani)-

RNRL, according to the family settlement, is not entitled to trade the gas that it gets from the KG Basin and has to use it for power generation by its own group companies. But the massive 7,000 MW Dadri project is still on the drawing board and there is no way in which it can consume its entitlement of gas through other projects. RIL has therefore taken the position that it will supply the gas only when RNRL can consume it at its own power stations.

INFERENCE-

RIL has already contracted to sell 15 mmscmd of gas to various fertiliser companies and a further 12 mmscmd to power producers. These have been contracted at $4.2 per million British thermal units (mbtu) - government approved. Its current output is known to be around 25 mmscmd only, but this is expected to be ramped up to 80 mmscmd by the end of this fiscal. However , according to the judgement, RIL has to part with 28 mmscmd for 17 years to RNRL at $2.34/mbtu. The loss of revenue to RIL due to this is estimated at $1 billion.

CURRENT STATUS-

Round one of the legal battle was won by RNRL when the Bombay High Court upheld it's plea and asked RIL to honour the family MoU. RIL sent a letter to RNRL stating that it will not honour the verdict until the approval of the government over the pricing issue is received. RNRL replied saying that "The unjust conjuction that the government approval is required for price, quantity or tenure has been unequivocally rejected by the honourbale court and hence your stand in the letter is in violation of the orders of the court". In response RIL is ready to move to the Supreme Court next week and RNRL states that it is prepared for the fight.

MY VERDICT-

There is also the ongoing case between RIL and NTPC on the MoU to supply 12 mmscmd for 17 years, again at $2.34/mbtu. Assuming that the NTPC case goes against RIL and the probability that it will is high because the RNRL price was based on the NTPC deal which was forged before the family settlement - RIL will have to part with, in all, 40 mmscmd of the output from KG Basin at $2.34/mbtu as against the discovered price of $4.2/mbtu at which it is now selling to fertiliser and power producers.

M.E. @ S.E.com

                       Time and tide waits for no man….and as the saying goes it didn’t wait for me as well. After the month long university engineering exams (yeah we have exams lasting over a month in engineering) they finally got over and we decided to go for our second trip at Matheran.

                       This was the first of the Matheran trips and more importantly it was an all guys trip so there was no overheads of planning the trip. We left without any booking and we had planned to be a little adventurous by doing trekking from Nerul station to the hilltop. So far so good, till the sun started bearing its heat upon us and after a couple of hours of listening to Parekh’s “ bas its just 10 minutes ahead” we all just slept on the road there waiting for a godsend angel to transport us to our final destination. And there came a taxi willing to take us along we didn’t even wait to bargain just thankful that the torturous walk was over. At matheran we had some bizarre experiences where we started saying ghost stories at night and then there was the story of “Sagar ka Bhooth”. After which we also played the imitation prank on the hotel waiter at night…the details of which are too confidential to divulge into which I am sure the people present would know better. This was also  the trip where the still closely guarded secret of “Big Job” surrounding Saurabh Sankhe emerged… By the way Saurabh is a guy from our group who was teased with Sumangal in the first year as they were the first Dostana couple to win a 3 night 4 day stay at Goa and he is the same guy who carries nailcutter for a 3 day trip as he thinks that his nails might outgrow….

                         So, that’s how we kickstarted second year and then it was regular college again. The trend for this year definitely was Birthdays. It became a trend wherein Gaurav, Karan, Arpit, Jitin, Parekh and I went at night 12 prior to the birthday to wish the person and we went to almost all 20 people’s houses encomapassing an area from Mulund to town to Borivali. It literally covered the entire Mumbai. This was almost always followed by a birthday bash the next day and along with that was a trend of surprises. It started as innocent small level gifts and with increasing expectations the nature and magnitude of suprises just expanded exponentially. There are a few that I would like to quote to show you the change of trends. It began with Gaurav’s birthday where we threw him a surprise house party which by the way was not that much of a surprise for him as he had figured it out and the trend continued with Sumangal’s birthday where we created an entire treasure hunt for him with several gifts and he had to try and figure out the riddles which lay all over his building. Then was the best part of the year where all the twenty of us came together to pull off a video for Karan on his birthday. It was the best gift that anyone can get and each one of us had some part to play in its development. I still remember the night when we showcased the video on his birthday and there was not even a single person who didn’t cry. I must admit I used to be very jealous of him then as having your own birthday video is like having your friends with you-live all the time and I felt that even I wanted something like that. And my friends did realize it and how…..it was the month of February when Parichay – our college cultural festival was in full swing and everyone was busy in their own life still all of them gave quite some time of their own to make my birthday the biggest ever. They used a better software (than the one I did for Karan) to compile the video, they used a better storyline to make a movie out of it and they gave me 20 gifts to make it perfect. The video had a built in treasure hunt where each one gave me hints for some gift which I had to guess and then there were dedications. Trust me it was and still is and will always remain the best gift of my life….i couldn’t thank them enough then but every opportunity I would get I would like to thank all 19 of them (me being the 20^th one) to make every moment so special for me…and the best part of it all was that everyone was up for the idea….makes me feel special man…I would take this opportunity to thank all of them.  Arpit, Gaurav, Henali,Jitin, Karan, Khyati, Monal, Mangal,Namrata, Nihir,Nisha,Parekh,Resha,Ramita,Saurabh, Shardul, Tejasvi, Thakkar and Vishal  (yes people this is my group of 20 which I keep raving about and with whom I have literally lived my four years of engineering) newazs too much senti stuff….lets come back to the fun part…

                         This is going to be one long blog as there is so much to write…

                     Second year was the time when there was the introduction of new friends in my life… I became friends with the tubelight of our group Namrata (don’t kill me for this)… she was so slow at understanding jokes that at times we felt that she laughed today on a yesterday’s joke…but she is a fun character to be around…take for example that she by mistake dashed into the CPU of the Computer in a laboratory and she went and said sorry to it..or she looked at the fan and asked us “why does this go round and round??”. These are Namrata trademarks if you ask such questions you pulled of a Namrata. I also became friends with Tejasvi…let me give you a brief introduction…someone who takes a lot of tension for whatever the exam, who has a stationary store on her study who is very creatively inclined and loves to make friends she’s a lively character… I still remember I used to call her up everytime she went for some tuitions as if I was her transit buddy….During the exam times I became friends with Henali who over the years has now become my study partner and we keep having these “who gets more marks” competitions which she always wins without doubt as she is the more studious one. It’s been four exams since and I am still waiting for my turn to beat her..and then there were also Karan and Mangal (sumangal actually but too long to write or say). There are nice little stories that follow to describe our friendship and I still wonder in amazement how the three of us came to be friends.

                             Okay so second year was the time when a lot of Jhols happened ( Jhols as I describe them is any tiff between any two god damn friends for any ridiculously god forsaken reason) and I became popular as the Jholmaster as somehow I fell into one Jhol after the other without me even understanding how. It was as if I was the honey and Jhols were the bees never left me alone….and Mangal was a companion in helping me settle them one after the other.. and Karan was my April Fool buddy…we (including Harsh, Tejasvi, Karan and I) had pulled of a monster prank by faking my accident just one day prior to 1^st April and that I was admitted in the hospital and people bought it…it didn’t last for more than an hour as it went out of hand and I do not want to indulge into the consequences that followed which didn’t really bode well for me as everyone was angry but we had also pulled off another intelligent one where we made everyone believe that our website ( a forum created by Karan for Computers) was hacked and everyone believed it smoothely till the extent that people started planning the look of the next website,karan even faked a call to his bank to revert the credit card payments this was a fun one to pull off. Newazs so that’s how I knew both of them and three of us shared quite a good camaraderie which became stronger when Karan and I turned dectectives.

                       It was around the time of October when Mangal started behaving differently. He was aloof and secretive and that’s when I suspected that he was upto something. I confronted Karan and told him that I feel that there is a girl in Mangal’s life and when I told him outside Makrand’s tuitions that it was Ramita I suspected he got angry at me suggesting that it just cant be the case. Anyways I didn’t stop my speculation and then once before submissions I called up Mangal to ask him when was he coming to college and he said that he was out alone  buying stationery from Bhagubhai but was on his way and then when Karan called him up he told Karan that he was in the library. Unknown that he was that Karan and I could be together and even though we had to meet submission deadlines we just left all the work and got to work like Sherlock Holmes. We visited the library with no sign of him and that’s when I told Karan that if we find him with Ramita it stands confirm. We went to the stationery shop through a backdoor entry and there voila he was with her and stationery they were buying. Mangal realized that evening that his secret was unearthed when we gave him a friendly embrace and a pat on the back in front of the entire group for no apparent rhyme or reason but his secret remained closely guarded with us till he went and told everyone about it on his own. We definitely were very happy for them.

                          Ours is a very active group and we like to take part a lot in college activities. That is why in the third semester all of us were actively involved in the techinal festival of our college Protocol by C.S.I.(Computer Society of India).And we organized three events- the outhouse Treasure Hunt, The Robotics racetrack and for the first time in D.J.Sanghvi “The Amazing Race”. This is an event which is my favourite as now in its third year it has become the most important event of a college festival and I am proud to be associated in its charter year. I remember vividly that our events had record participation for that year.

                              But we were not only active in college activities we were also active in crazy activities and the craziest thing that we have ever done is to divide our group into gang and antigang. Gang as I understood was a bunch of whackos who considered themselves to be self proclaimed like-minded freaks, in my definition they were perfect wannabes.  Considering the slack that I have drawn towards the “gang” you must have figured that I was from “anti-gang” infact it’s charter member along with Monal and then the legacy carried on by Resha. Anti-gang I must admit emerged as a retaliation to the idea of gang and we considered ourselves to be the more rational of the lot which was clearly envisaged by our t-shirt quote which read “aint no buffoons ain’t no boneheads, we are the intellectuals that all fools dread” as coined by Resha. The t-shirt which was launched by us on the train journey to Nainital was by the way a mastermove as the “gang” never considered that we could be of any good and this shut them up and how. After this it died down though but you must be wondering what was this Gang-Antigang for…what purpose did it serve…to tell you clearly- even I don’t know it was just an expression of imaginative brotherhood but however silly it was it was fun.

                                  Every year had its set of trips and this year my group went for two one day trips and coincidentally I wasn’t there for both. First was Lonavala in the rains and they keep on raving about it more often than not to make me jealous but I do not regret missing it as I was on a trip to London and Switzerland which definitely was cooler as in Switzerland I did Sky-Diving from a Helicopter and this is one of the most thrilling experiences of my life. That thirty second freefall was as if I am jumping into a blackhole and my entire life flashed by in that timperiod for the sole reason that before jumping the instructor tells me that it’s his first jump too…The second one day trip was Alibaug somewhere in October when I was at Ahmedabad my native place. Incidentally Alibaug had some girl bonding through the expression of “whackos” – a group which did some girly stuff that I didn’t clearly understand and neither was I interested in knowing but more importantly “whackos” started at sunrise and sunk at sunset….and thank god for that.

                                The last most significant thing worth mentioning for an eventful year was the Nainital trip. A very hectic trip organized by C.S.I which many people didn’t enjoy due to the cold and the immense travelling. Although I feel otherwise as I did enjoy on the trip and that was the first time I made friendship with winter as earlier I used to hate the cold. My friendship with Gaurav also grew with this trip. ( Let me introduce Gaurav – also known as G, Gentleman, Gavar, Gauri. Quite a charmer with the girls, he is a sauve Casanova well aware of the tricks of the trade so girls beware…and when I say this they feel I am jealous of gauri but clearly my statements are for the better of the female population at large…..hehehe … but he is a buddy and someone who knows all my secrets. His only drawback is that he supports Manchester United). Anywazs coming back to the trip The best part of this trip was in the night journeys by train where we use to stay awake and do timepass by singing and hearing to Nisha’s ghost stories. Also the evening at Delhi when we went to Connaught Place was memorable as the place was good and there we took some one million photographs and we have the best ever group snap taken here.

                                      So that’s how the second year also went by. But clearly I would rate this year as the best year I had in engineering. This was the year when I enjoyed the most and living life with friends got a whole new meaning for me.

 

                                        

                       

ME @ FE.com

                        I was on a self imposed sabbatical so no posts for February but after the break I am back with a post which I enjoyed the most to write as it made me recollect the best years of my life. As I come to the end of the four most wonderful years of my academic life I thought it was fitting for me to recount all those experiences throughout my engineering with my college friends. These are fond memories which I cherish some good some bad… and if anyone has a problem with what I have written then it’s their problem…..juss kidding….yeah but no harm meant to anyone here….

                        It was the first day of college and I hated the thought of entering college gates as it was not my first choice college and I never wanted to join a college without any campus…so the negative vibes started at the gates itself… a sea of unknown faces surrounded me and it felt as if this is not the place I was destined to be… So somehow the first week just drifted by and the defining moment as we all vividly remember was when we (being around 20-25 of us) asked Varun Harwani to treat us for his birthday that day and he politely obliged. Shameless that we were we all went – a clear case of “Jaan na pehchaan main tera mehmaan” and that is when the group actually happened.. People came to know each other by names for the first time even the birthday boy for that matter and it was when Tejasvi had asked Varun when was his birthday – she was clearly oblivious why he was throwing us a treat.

                        First semester were the days when everyone was afraid of a monstrous subject named Mechanics and everyone around me used to take tuitions whereas I trusted my instincts of IIT entrance exam and opted against it. It was easy to take the call not to take tuitions but study definitely was tough and that’s when I became friends with the scholar of our class Nihir Nemani. And so it was mechanics that helped me make my first friend in college.

                        These were the days of my wasted life where everyday we used to go to someone’s house or sit at a coffee shop or go to the beach. These were the nice days of getting to know people and making a good first impression. None of us knew what we wanted to do with life and that’s when one of us…the man who always had to do something- Harsh Parekh… came into everyone’s life with an idea. He wanted to direct a play, we had auditions and then Waisa Bhi Hota Hain happened…. A lot of practice and a lot of effort went into and we finally performed at a couple of festivals and we even won some awards. That was when I realized that even someone as obtuse as me could act…though I was not great….but I did something…

                        The first semester passed away this way and second semester started…when Mechanics was replaced by Engineering Drawing as the subject of focus (btw I just scraped through in mechanics with a measly 44 my first real insight into engineering never before had I come so close to failing). Again I didn’t take tuitions and for good reason here as I had studied the subject for a couple of years in school. Thinking about Engineering Drawing, it reminds me of the big bust up between Harsh Parekh and Arpit Gupta over a case of mass bunking practicals….where the latter wanted to and the former didn’t….just imagine the kind of issues we used to have…sounds so immature and both of them have laughed over it later…

                        Second semester was the time when I found my first love in college- flowcharts… I used to love drawing flowcharts so much that I voluntarily drew flowcharts for other people as well….Infact I was quite sincere during my first year of engineering…I actually used to create master copies of the writeups for journals and I used to enjoy doing it….It just goes to show how much I have changed since then…

After drama, Harsh and I thought of trying our hand at dancing and we joined a group in college which was performing dances of the famous Kishore Kumar and we were popularly known as the KK group. I must admit the dance was funny and we were also laughed at but I used to enjoy doing it somehow it was different than what I had done in my life till now and I enjoyed doing it…although I know for a fact that we were wonderfully pathetic at it.Again we had put together some stage performances and it was a good but fun experience. This was also the time when I made a new friend in Khyati and through her Monal. I have some very nice memories with them of this year after which Monal and I share a happy go lucky friendship still whereas Khyati and I have a very love-hate friendship.There is one month of love and one month of hate….and the cycle repeats invariably….But both remain special to me in their own respective ways….

                        Being engineers we were very intrigued by technology, especially Robotics. A couple of my friends- Nihir Nemani, Tejasvi Bongirwar, and the most vibrant of all Sagar were the first to remake a robot made by their elder siblings and we as a team took part in one of the college festivals- that was the first time we got introduced to festivals which later became a very important part of our lives. Obviously we lost, infact we didn’t even qualify for a proper timing but it was a good experience.

                        One very colourful character that got introduced in my life during this period was Henali (and the colour you must have guessed was pink)….She is a perfect uptown girl…as if a phirang entered this unknown world of backward classes and it was fun to hear her communicate in our matrubhasha Hindi as she knew very little of it. She made quite a few interesting comments but this one still rules the charts- her order in Papillon- “ Ek Nimbu pani bina ice bina masala aur bina shakkar”......She took the order quite literally as Nimbu aur pani was all that was left….

                      One of my first addictions also got introduced to me during this time….Messaging….Yes not many people remember it but I used to send a new forward almost everyday during this time…maybe that’s how I got to know everyone and everyone got to know me as my name kept popping in their inbox every morning.

                        Last but not the least comes the trip to Mahabhaleshwar which was supposed to be attended by a Mr.Karan who backed out because he had to attend Engineering Drawing tuitions- the nerd that he is…and Mr. Nihir Nemani who backed out due to I don’t know reason number 127 maybe..(as the years progressed his reasons became all the more innovative and colourful).Eventually Sumangal, Harsh,Shardul,Bandish and i went.

                        These are just a few of the good memories that I remember about my first year of engineering. But by far it was the best year as there were no quarrels no tensions people were trying to know each other and it was the best time that all of us had. We left home at eight in the morning come back at eight in the evening. Almost everyday we used to hang out go for coffee at some cafes, spend time at the beach, chill around on someone’s terrace, watch movies …while away our time just because we didn’t really know what to do with it….and trust me that was the best time I had … we had ………….

Obama and India

Barack Hussain Obama was recently appointed the President of United States of America- (a golden crown encrusted with thorns) and the entire world had its eyes glued to their television sets just to watch his speech and inhale his moves. There is some undefined charisma around this magician as the Americans and the people at large look to him as the modern day Messiah. A superhero, who, they believe will resurrect the world from this abysmal trench which The Bush administration has left the world in.

 

How ironic is it to see that you, me and the world is looking towards the same country which buried the world into this pit, to bail us out from it. Such is their grandeur its comparable to the pull of gravity in the black hole…if they get sucked in they carry the world along with them. Anyway so hoping against hope that this Revolutionary Democrat has some tricks up his sleeve and he is able to re-build the economy (which by the way is at a staggering trillion dollar debt) ‘brick by brick’ then let us analyse the implications of his ascendancy on India as a country.

 

The most outstanding aspect about Obama’s campaign is the fact that his promoters made it very clear what it is not but always left it obscure as to what it is. His trump card was to address the people …in previous decades the past presidents had campaigns of the riches by the riches for the riches, which Mr.Obama modified to a more realistic of, for, and by the people…. (Maybe because there is no one left rich in America anymore)…

 

The most controversial statement, which got India concerned, has been in the field of outsourcing. Obama proclaimed that he would safeguard the jobs of native Americans. This statement is quite an obvious politically correct statement for any politician to gain the trust of people and win elections especially in such troubling times these words are like sweet nectar for the masses. He will take measures to safeguard American jobs but that does not necessarily mean that outsourcing will be terminated as concluded by the judgemental media. The recession will also affect jobs in India but the fact remains that in India, the educated labour comes at a much cheaper cost as compared to America. In the States, people get paid on an hourly basis whereas here the job culture is such that people won’t mind putting in an extra couple of hours just to impress the boss. Thus they cannot do without customer services and shifting the entire set-up back to the states would cost them a fortune so invariably they will remain to the Indian subcontinent- its just this temporary lull which the outsourced companies have to see through and which infact everyone has to recover from.

 

Another important concern as projected by the pundits is the stand of the Obama administration on the Indo-Us nuke deal. Although Obama eventually voted for the nuke deal he had moved an amendment in the Senate which would
cap the amount of imported nuclear fuel that India could stockpile.
This leads us to believe that India will eventually be forced into signing the  Comprehensive Test Ban Treaty (CTBT) and the Nuclear Non Proliferation Treaty (NPT) which are two treaties India has carefully avoided giving it the freedom to be a force to reckon with in the international circle. If this right is given up then India will lose its power to take decisions on its own in the international arena and will end up becoming USA’s puppet. I am not saying that the nuke deal was a failure infact it is the best thing that happened to India in a while- the man who brought L-P-G (liberalisation-privatisation-globalisation) to India also brought power and it was much needed for the interiors of the country where they don’t have the luxuries of electricity spanning over days. At least this will make India more connected from interiors to the metros. But India will have to tread its steps carefully now so as to ensure regular supply of nuclear fuel and resources simultaneously avoiding signing those treaties for it to reap the benefits of this deal and the vision of our forefathers.

 

The most sticky issue which India has had to suffer over the years is the Kashmir issue. My blood boils over how our honourable next door neighbours have succeeded in making an issue out of nothing at all trying to steal from us what is rightfully ours. The cause for concern is that over the years Democratic governments are known to be less friendly to India than a Republican association.

Washington is in a big dilemma. On one hand they want to abolish all the terror camps within the Pakistani soil as one of the camps has been a cause for the bombing of one of their prominent buildings and it also brings USA in a positive light in front of the world. But if they take steps to do that then the Pakistani government has given open threat that it will withdraw its troops from the Afghan border thus annulling any strategic support given to the Americans by them. Washington does not want to lose its hold on Afghanistan a country on which it has taken a lot of time to get hold of and from where they can very easily rob oil deposits and transfer to their country free of cost. If they don’t support India the world will take note of it and if they do support India they are risking the enmity of Pakistan and its strategic partner China (who supports Pakistan by arms and ammunition just to keep a check on our country’s progress) thus they will adopt the reasonably milder path of peace talks between the two countries and the intervention of a third party into the already severed relations will re-hyphenate the Indo-Pak relations already hanging by a loose thread. If India deploys troops without America’s consent it risks the ire of the world and may lose international credibility as far as the nuke deal is concerned and the last thing that a country wants during a recession is international isolation. So it’s a wait and watch time to see how Obama and India’s incoming prime-minister handle the virus named Pakistan.

All in all India may not be at an advantage with Obama's regime but according to my understanding I don't think there is any cause of concern for India as far as Uncle Sam does not meddle his fidegety nose into India's internal matters.