RNRL contests RIL's claims for profit share in gas sale

“The profits that RNRL may make is not a concern of RIL. In fact, RNRL was created just so that it could earn such a profit. Otherwise there was no need to create such an entity,” the Anil Ambani group firm said in its affidavit filed in Supreme Court on Tuesday.

Cross petitions

The Supreme Court had issued notices to both RNRL and RIL, which had made government an intervener, on their cross petitions wherein the former amendment in the High Court order to make the gas supply by RIL binding.

RIL, on the other hand, had challenged the judgement that asked it to supply 28 mmscmd of gas at the rate of US$2.34 per mmbtu, a price that is 44 per cent lower than the US$ 4.2 fixed by the government.

“Further, assuming that RIL does not sell gas to RNRL at this price, it would presumably sell this gas to other parties at US$4.2 per mmBtu and would pocket the difference between US$2.34 and US$4.2 for itself. “The question then is whether it is RIL or RNRL which should earn this amount, and not whether the government is entitled to the same,” it said.

Liked the story?

  • 0

  • 0

  • 0

  • 0

  • 0