Ambanis drew a non-compete agreement

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Bangalore: Following the Supreme Court's verdict on the long-drawn legal fight between Reliance Industries (RIL) and Reliance Natural Resources (RNRL) have started their talks and seems to discount any possibility of competing against each other. Both Mukesh and Anil Ambani have agreed to cancel all non compete agreements. Instead a new, simple non-compete agreement has been signed which is limited only to gas based power generation. According to the CNBC-TV18 reports, not only the two companies see a possibility of working together but they also see synergies in some businesses like telecom and retail. Most Non-Competes including telecom, financial services were to expire in 2015. The Supreme Court had ruled that the two parties bickering over the supply of gas from the Krishna-Godavari basin sit across a table and renegotiate terms. The ruling, which was seen clearly in favour of RIL, stated that the talks must be held keeping in mind government's gas policy. Sources, however, said that RNRL has not changed its stance and continues to demand 28mmscmd gas for 17 years. Meanwhile, the power secretary has said that he will desist from making any comments before seeing the terms of the agreement. The new agreement has been approved by both the companies and two parties are expected to quickly negotiate gas supply agreement in which they will eliminate room for any further dispute.

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