RIL contract provides no Govt role in gas price fixation: RNRL
Anil Ambani group firm Reliance Natural Resources Limited has told the Supreme Court that the government has no role to play either in the utilisation or the fixation of gas price as per its contract with Mukesh-led Reliance Industries Limited.business Updated: Sep 09, 2009 14:53 IST
Anil Ambani group firm RNRL on Wednesday told the Supreme Court that the government has no role to play either in the utilisation or the fixation of gas price as per its contract with Mukesh-led RIL.
"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 said in an affidavit while replying to the petition filed by RIL.
Stating that Reliance Industries Ltd has been changing its stance with regard to the MoU (family agreement), Reliance Natural Resources detailed RIL's response on different occasions and said "this fully exposes RIL's blatant lie and falsehood."
The two sides had approached Supreme Court challenging a decision by the Bombay High Court on June 15, which said RIL should provide 28 million cubic metres of gas per day to RNRL at USD 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 apex court has decided to commence hearing on this matter on October 20.