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Reliance gas row: ministry against new EGoM

The bitter battle between the Ambani brothers over gas supplies from the Krishna-Godavari (KG) basin may have to be finally settled in the SC as the possibility of a re-constitution of the empowered group of ministers to resolve the issue appears bleak. Anupama Airy reports.

business Updated: Jul 02, 2009 23:18 IST
Anupama Airy

The bitter battle between the Ambani brothers over gas supplies from the Krishna-Godavari (KG) basin may have to be finally settled in the Supreme Court as the possibility of a re-constitution of the empowered group of ministers (EGoM) to resolve the issue appears bleak.

Petroleum Minister Murli Deora is not in favour of re-constituting the EGoM on supplies from the D6 block of Mukesh Ambani controlled Reliance Industries Ltd (RIL).

A week before the Bombay High Court ruled on June 15 in favour of Anil Ambani’s Reliance Natural Resources Ltd, the petroleum ministry wrote in response to a query by the Prime Minister’s Office (PMO), saying it found no need for a new EGoM. The details are available with Hindustan Times.

“It is the considered view of this ministry that it does not seem necessary to re-constitute EGoM to examine and decide issues of gas pricing and its commercial utilisation,” the ministry’s letter said, noting it had Deora’s approval.

The letter said relevant decisions could be best taken by the Ministry itself in light of clear guidelines on the sale of natural gas agreed upon by the EGoM in May 2008.

A senior ministry official said : “Where is the need to constitute or re-constitute the EGoM just now? Both the tasks have been accomplished,” the official said.

RIL has already decided to appeal before the Supreme Court, though there have been unconfirmed reports of its interest in getting the government involved all over again.