The Supreme Court on Friday ruled in favour of billionaire Mukesh Ambani's Reliance

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Industries in a gas-pricing dispute with younger brother Anil's Reliance Natural Resource, making the price fixed by the government as binding.

The ruling closes a chapter on a high-profile battle that could set the tone for the country's policy on gas pricing.

The case involves terms of a deal under which Mukesh Ambani-led Reliance Industries was to supply Anil Ambani's Reliance Natural with 28 million standard cubic metres a day (mmscmd) of gas for 17 years at a rate below the government price.

Analysts have raised concerns the dispute is putting off foreign investors, with government interference in the pricing and marketing of gas raising investment risk in a politically sensitive resource.

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S.C. TRIPATHI, FORMER SECRETARY, PETROLEUM MINISTRY:

"It has brought more clarity as far as policy is concerned that the government is the owner of the gas and has the power to decide prices. This makes government's role more predominant, but votaries of economic liberalisation may consider this as a step backward."

H.P.RANINA, TAX ADVOCATE, NEW DELHI:

"This issue is now not merely confined to the concerned parties or the courts, but will also involve members of parliament, as the government will have to come out with a legislation to ensure that similar disputes do not happen in the future and investors have a clear understanding of what is at stake.

"The next six weeks are going to be crucial as the two companies will have to renegotiate and arrive at a deal."

RAJAT RAJGARHIA, DIRECTOR OF RESEARCH AT MOTILAL OSWAL FINANCIAL SERVICES, MUMBAI:

"The verdict is definitely positive for Reliance Industries. The uncertainty surrounding the dispute is now over. But one needs to see the judgement in detail to see what it says about future course of action."

R.K. GUPTA, MANAGING DIRECTOR, TAURUS MUTUAL FUND, MUMBAI:

"There will be a severe impact on RNRL profit in the June quarter as they are only in the business of gas distribution. Anil Ambani will have to think of other business proposition.

"I think for RIL, one can buy until around 1,200 rupees. RIL should see a better June quarter because of this verdict. It is positive not only for RIL, but also for Indian capital markets."

NEERAJ DEWAN, DIRECTOR, QUANTUM SECURITIES, NEW DELHI:

"The decision is totally in favour of Reliance (Industries). We expected something for RNRL which has not come. Negotiation is something which will take a long time or may not happen also.

"RIL (stock) is already up 3-4 percent (and I think) we can see another 3-4 percent upside.

"It looks very bad for RNRL on the face of this. They were taking $2.3 as the gas price for their projections, which will go up to $4-4.2. This is a major hit and even their power company that was dependent on this gas for their projects, their costs will have to be repriced tremendously."



K.K. MITTAL, HEAD OF PORTFOLIO MANAGEMENT SERVICES AT GLOBE CAPITAL:

"Definitely this will help the government in making the policy in gas production and distribution and also the fixation of price.

"As per the judgement they have to re-negotiate the price within a certain period. I think that will become the basis of pricing of gas.

"RIL profitability will improve to the extent of 20-25 rupees additional EPS (earnings per share) and to that extent the market price has gone up also from the low of today."