Govt has no role in gas price row: Anil

Govt has no role in gas price row: Anil

Reliance Industries has the complete marketing freedom for sale of gas within India

Anil Ambani (left) and Mukesh Ambani. File photoIn an affidavit RNRL said: “RIL  has complete marketing freedom for sale of gas within India. 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.”

RNRL made it clear that the family partition has no bearing on the government’s right over the natural gas extracted from KG – D 6 in Krishna Godavari basin in Andhra Pradesh. RNRL said the RIL was changing its stance with regard to the MoU (family agreement) ever since the dispute arose on the pricing of gas.

Final hearing on Oct 20

The Supreme Court has fixed October 20 for the final hearing of the matter in which government, NTPC and many power producing companies had filed their petitions seeking relief.

Both RIL and RNRL had challenged the June 15 ruling of the Bombay High Court which said RIL should provide 28 million cubic metres of gas per day to RNRL at US$2.34 per mmBtu and both the parties should sign a necessary agreement for the same within a month.

RIL, however, is pleading that it was only a contractor for the gas from the Krishna-Godavari basin’s D6 block and did not have the power to fix the price, while the government has also moved a special leave petition in the case asserting its right on pricing and distribution of natural gas. The government has filed a petition seeking to assert its right on the national resource.

It has also sought court direction to declare the natural gas as national property and the authorities have the right to fix the price of it.

RIL had bid to supply gas to NTPC’s Kawas and Jhanor projects in Gujarat for 17 years at $2.34 per mmBtu. It, however, did not sign the contract and the matter is pending in Bombay High Court for resolution.

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