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Home News Power Sector News Ambanis will decide gas prices / utilisation- Govt has no role : Anil

Ambanis will decide gas prices / utilisation- Govt has no role : Anil

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AnilAnil Ambani group firm Reliance Natural Resources Ltd (RNRL) told the Supreme Court that the government has no role to play either in the utilisation or fixation of gas price as per its contract with Mukesh Ambani managed Reliance Industries Ltd (RIL). But left parties already asked the goverment to decide on whether a “national asset” like gas should be appropriated as “family property”.

Left also  demanded the pricing of gas should be based on “rational and a transparent formulation”. As gas is being produced in our own soil, there is absolutely no justification of pricing it on the basis of linkage with international price of an altogether different product like crude oil as has been done at present by making the gas price at US $ 4.32 per mmbtu. Hence the present gas price determined by the EGoM must be revised and it should be benchmarked to 2.34 dollar/mmbtu as offered to NTPC, a Government owned PSU, by RIL in 2004-2005.

“RIL has complete marketing freedom for sale of gas within India,” RNRL said in an affidavit while replying to the petition filed by RIL. “The marketing freedom would include within its scope the freedom to sell the gas on such terms and at such price that RIL deems fit and proper.”

Referring to the family MoU between Mukesh and Anil, RNRL said, “RIL has been changing its case from the very inception with regard to MOU. First before the single judge, RIL argued that MOU did not exist and then before the division bench, RIL took a summersault and accepted that the MOU existed.”

An RIL spokesperson refused to comment on the issue.

RNRL also contended in its affidavit that RIL has violated the demerger scheme. “RIL has wrongfully caused the execution of a document the effect of which would be that the business of supply of gas, as contemplated in the scheme of arrangement, would not be transferred to RNRL.”

Stating that RIL-RNRL gas supply agreement was not affected by the government’s gas utilisation policy, RNRL said, “Under PSC (production sharing agreement), the contractor is bound by the gas utilisation policy prevalent at the time of declaration of commercial discovery, which occurred with respect to KG D6 in the year 2002-03.”

“PSC does not subject the supply of gas to RNRL to gas utilisation policy announced in 2008,” it added.

Source - Hindustan times


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