Ambani brothers pledge ‘environment of harmony’ with new pact
New Delhi, May 23: In a seeming breakthrough, the respective Reliance groups led by brothers Mukesh and Anil Ambani Sunday said they have entered into a new non-compete pact that will help resolve the Krishna-Godavari gas dispute, hoping for an ‘environment of harmony’ in the future. “These developments would eliminate any room for any further disputes between the two groups on matters relating to the scope and interpretation of non-compete obligations,” the Anil Reliance Dhirubhai Ambani group said in a statement.
“All existing non-compete agreements between the two groups executed in January 2006 stand cancelled," the group said, adding the focus was now on an early negotiation of the gas purchase agreement as directed by the Supreme Court. An identical statement was issued by the Mukesh Ambani-led Reliance Industries.
The boards of companies belonging to the two groups have also endorsed the new pact that allows the two groups to enter into any business or industry, other than gas-based power generation by Mukesh Ambani-led Reliance Industries for 12 years, the statements said. The statement said the cancellation of existing non-compete pact will provide enhanced operational and financial flexibility to both groups and greater ability to participate in growth sectors such as oil, petrochemicals, telecom, power and financial services.
