Reliance Industries shares rally on plans to pursue gas price arbitration

Reliance Industries' (RIL) shares gained as much as 4.2 per cent to its highest since April 2011 after the company announced its plans of taking the government to arbitration seeking implementation of higher gas prices.

RIL and its partners - UK's BP Plc and Canada's Niko Resources - issued the notice of arbitration to the government on May 9, the three companies said in a joint statement on Saturday.

Shares in RIL also tracked a broad-based rally that sent both the benchmark Sensex and Nifty to record highs.

Mukesh Ambani-led RIL and its partners were to get a new rate from April 1 for gas from their Krishna Godavari basin KG-D6 fields in the Bay of Bengal after the expiry of the price of $4.205 per million British thermal units, which had been fixed for a five-year term.

(Reuters)