Govt has no role in gas prices or utilisation: Anil | business | Hindustan Times
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Govt has no role in gas prices or utilisation: Anil

Anil Ambani group firm Reliance Natural Resources Ltd on Wednesday 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.

business Updated: Sep 09, 2009 21:14 IST
HT Correspondent

Anil Ambani group firm Reliance Natural Resources Ltd (RNRL) on Wednesday 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).

“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.