Anil Ambani's RNRL is locked in a legal dispute over the terms of Gas Supply Master Agreement with RIL, controlled by elder Ambani sibling Mukesh. As per the disputed GSMA, RIL agrees to supply gas to RNRL for the latter's power-generation projects.

"These things (price, scale of production) are not negotiable... We are not going to subsidise you (Reliance Natural Resources Ltd [Get Quote])," Harish Salve, RIL's counsel said.

Price is one of the contentious issues in the present GSMA. Reliance Industries' stand is that price determined by the two parties must be subject to government's approval, while RNRL's stand is that government has nothing to do with price at which RNRL is due to get the gas from RIL.

Salve also said that though RNRL's power plant in Dadri, Uttar Pradesh, was yet to come up, RIL was not ready to halt the gas production from KG basin, which will start by next month.

Since RNRL finds that GSMA is "not bankable", it moved HC last year. RNRL says that GSMA does not guarantee certainty of price, tenure of supply and even the quantity.

But Salve said in his concluding argument today that "these were just 3 or 4 weak points...there is no need to tinker with the GSMA."

As per the Reliance demerger scheme, Anil and Mukesh groups were to work out a suitable agreement for gas supply by RIL to RNRL.