RIL says govt approval clause is in NTPC clause

RIL says govt approval clause is in NTPC clause

 
Reliance Industries advocate Harish Salve appearing before a three-Judge bench headed by Chief Justice K G Balakrishnan said “It is clear in the June 30, 2005 draft contract between the Reliance Industries Ltd and National Thermal Power Corporation that it needed government approval.’’

The memorandum of understanding(MoU) between Mukesh Ambani and his younger brother Anil for supply of gas to Dadri power project was based on the draft contract, so it needed to be approved by the government, Salve said.  He refuted the arguments of Reliance Natural Resources Ltd (RNRL) that it had a reservoir of gas of more than 400,000 square kilometre undersea and clarified that many of these wells did not yield gas so far.

The memorandum of understanding was only for supplying gas from KG6 basin as long as it lasted subject to  approval, from the government, he added. While concluding his arguments, Reliance Natural Advocate Mukul Rohatgi said if 28 mmscmd gas was not supplied to Dadri plant at the agreed price of $ 2.34 mmBtu for 17 years, the scheme of demerger would be at danger.

“One of the four units of Reliance Industries to go to Anil Amabni would be extinguished. If the gas supply memorandum of understanding is not executed then annul the scheme of demerger,’’ he said.

“Go back to the start from the beginning, it would be disastrous. Nobody wants it, even the shareholders do not want it. It would be an extreme step which would have to be taken ,’’ said Rohatgi.

For setting up of Dadri power project of Reliance Natural Resources Ltd , an appropriate scheme of for gas supply should be worked out and it would be in the better interest of both the companies, he said.

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