Reliance Industries Ltd. (RIL) and Reliance Natural Resources Ltd (RNRL) have "signed a gas supply master agreement" in line with a Supreme Court ruling last month, RIL announced without giving details of the accord.

RIL, headed by India's richest tycoon Mukesh Ambani, added that the agreement with RNRL, led by his younger brother Anil, complied with the government's gas utilization policy.

RNRL shares rose 3.29 percent or Rs.2.1 to Rs.65.95 in reaction to the news as the deal signals that gas supply for its power plants is secure, while those in RIL rose 1.14 percent to Rs.1,063.25.

In a landmark decision last month, the Supreme Court rejected an earlier deal between the siblings that involved sharing resources from India's richest natural gas field off the east coast.

Anil had demanded the honoring of a 2005 agreement allowing RNRL to buy gas for 17 years from the Krishna Godavari Basin owned by Mukesh at a price far below one later set by the government.

Mukesh, 53, sought to have the deal scrapped and said Anil must pay the amount stipulated by the government — a position upheld by the court that said the gas belonged to the nation and could not be sold for a cut-rate price.

As a result of the ruling, Mukesh's company gains higher revenues while the government gets bigger royalties.

RNRL said after Friday's deal that it will now take steps so that the government allocates the natural gas.

"This deal gives some comfort to RNRL as supplies of gas would be certain," said Gaurang Shah, an analyst with financial services group Geojit BNP Paribas.

The latest announcement comes after the brothers called a truce in their feud, which stems from the division of the Reliance empire built by their father Dhirubhai Ambani, who died in 2002 without leaving a will.

The two have pledged to create "an environment of harmony" between their corporate groups.

Since the court order, Reliance has announced investments in two US-based gas fields, and outlined its plans for "mega-investments" in the country's electricity generation sector.