Mumbai, June 18: With the broad contours of the settlement between Mukesh and Anil taking shape, it is understood that both the brothers have agreed upon a non-compete clause for a period of five years.

While this condition is believed to be one of the aspects of the settlement reached over the ownership issues dogging the Reliance group over the past seven months, observers aver that this has become a standard corporate practice.

“Even in the recent deal involving the Chhabrias and Vijay Mallya for Shaw Wallace, there was a non-compete clause,” they said.

According to the formula, Mukesh Ambani will have responsibility for Reliance Industries Ltd (RIL) and Indian Petrochemicals Ltd (IPCL), while younger brother Anil Ambani will have responsibility for Reliance Infocomm, Reliance Energy and Reliance Capital.

Thus the elder brother will control the country’s leading petrochemical entities. Anil, on the other hand, will look after telecom, power and mutual funds & finance.

Interestingly, the younger brother will be relying on feedstock supply (gas) from RIL. The company is developing a 3740 MW gas-based power generation project at Dadri in Uttar Pradesh which will be the world’s largest gas based power generation plant at a single location.