We've no retailing right for gas, says Reliance Industries

We've no retailing right for gas, says Reliance Industries

RIL Advocate Harish Salve appearing on the fifth day before a bench of Chief Justice K G Balakrishnan, Justice R V Raveendran and Justice P  Stahsivam said “Now I will have to ask whether I can give gas to some company.”

Under the product sharing contract, the fixation of price of gas was taken over, now after the gas utilisation policy, the government has withdrawn the right to market gas from Reliance Industries, said Salve.

Salve also said the dispute between the Ambani brothers over the gas from RIL to RNRL could not be relegated for arbitration under the company law.
“It can not be relegated to dispute resolution procedure for a suitable arrangement,” Salve said countering the earlier suggestion by the court for referring the matter for arbitration.

The Supreme Court said the dispute over price of gas seemed to be between RNRL and government, but not between RIL and RNRL. “Why did you file an appeal?”  asked Justice Raveendran to Salve.
Salve answered ‘’I am aggrieved. The high court order says MoU is binding on us. We challenged it on principle.’’

When the court asked whether it would supply gas at $3.24 to NTPC, Salve said it might if the government approved the price after a decision was given in favour of the public sector power producer by the court.
Then the court asked would it be supplying gas to RNRL at the same price, he said only if the government approved the proposal of it.

‘NTPC won’t suffer if it buys costly gas’
NTPC Ltd will not lose any money even if it was to get natural gas at prices higher than those committed by Reliance Industries five years ago, the Power Ministry has told the Committee on Public Undertakings, reports PTI from New Delhi.
“In the event gas is not supplied to NTPC at the rate of US$2.34 per mmBtu, the burden of extra price of gas would be passed on to the consumer as fuel cost is a pass through as per regulations for fixing tariff under Electricity Act, 2003,” COPU quoted the ministry’s submission to it.