Monday, January 7, 2008

RIL - RNRL gas dispute is likely in favour of RNRL

RIL - RNRL gas dispute is likely in favour of RNRL , in which case it is negative for RIL and hence RIL will make all efforts to contain this 'damage' to a short term cause as RNRL has first hand on all future new gas discoveries - Hence these cases might occur.

1. RIL takes over RNRL as i said before, becos RIL wants this to be shor term impact for a good price and slowly kill this company, once this is in Mukesh camp. - Positive for RiL and negative for RNRL

2. RNRL takes back case and RIL makes fresh agreement with REPL(Rel Power) for 5years(as designated by court and not 17 years), by which case , has to approved by government. Hence this is strongly favoured by both parties.
Hugely positive for REPL as it gains all the advantage we are envisaging for RNRL.

FInally i conclude for RNRL investors to be cautious as it might be NEUTRAL for RNRL either Short term or Long term

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