RNRL assures govt on gas profit | business | Hindustan Times
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RNRL assures govt on gas profit

Reliance Natural Resources Ltd (RNRL) on Tuesday told the Supreme Court that government will get its full share of profit from gas in the KG basin, even if it is sold at $ 2.34 (Rs 104.72) by RIL despite government’s valuation of $4.2 (Rs 196.35) per mmBtu.

business Updated: Dec 08, 2009 23:01 IST
HT Correspondent

Reliance Natural Resources Ltd (RNRL) on Tuesday told the Supreme Court that government will get its full share of profit from gas in the KG basin, even if it is sold at $ 2.34 (Rs 104.72) by RIL despite government’s valuation of $4.2 (Rs 196.35) per mmBtu.

RNRL advocate Mukul Rohtagi argued before a bench headed by Chief Justice KG Balakrishnan and said the gas supplied by RIL to RNRL would be from RIL’s share and not from the government’s kitty. This he said would be in accordance with the production- sharing contract that has transferred the ownership of 90 per cent gas extracted from the KG basin to RIL for the next six years.

Rohatgi further claimed that RIL would make a profit of Rs 30,000 crore even if it sells gas at $2.34. Anil Ambani-controlled RNRL once again told the court that if it receives gas at a cheaper rate, it would produce cheap electricity for the benefit of the consumer.

Countering RIL’s arguments, RNRL said the submission that gas could only be sold at $ 4.2 mmBtu is only an attempt to inflate its profits. Rohatgi read out the minutes of the empowered group of ministers (EGoM) meeting and claimed that its decision could not have retrospective effect.