Ambani family agreement can’t override Govt’s right: Fert Sec | delhi | Hindustan Times
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Ambani family agreement can’t override Govt’s right: Fert Sec

delhi Updated: Jun 29, 2009 17:11 IST

The private Ambani family pact that split gas output from the Krishna Godavari basin D6 field between brothers Mukesh and Anil cannot over-ride Government’s right to formulate gas utilisation policies aimed at larger public interest, the fertiliser ministry has said.

Urea plants had been given the first priority in sale of natural gas from Reliance Industries’ D6 but the June 15 order by the Bombay High Court had given 70 per cent of the initial volumes from fields to Anil Ambani Group’s RNRL.

“The gas in question has been allocated (to fertiliser, power and other sectors) based on the Government’s authority and rights under the Production Sharing Contract (for D6) aimed at regulating gas marketing and allowing their orderly growth,” Fertiliser Secretary Atul Chaturvedi wrote to his counterpart in Petroleum Ministry, R S Pandey, on June 24.

“Our understanding is that any family settlement would not over-ride the sovereign right of Government to formulate policies aimed at larger public interest,” he wrote.

Twelve urea manufacturing companies were allocated 14.97 million cubic meters per day when the government prioritised sale of the initial 40 mmcmd from D6 primarily between fertiliser and power companies based on national priority of food security and meeting energy deficit.

But the Bombay High Court on June 15 ruled that RIL should honour its commitment in the family split agreement and supply 28 mmcmd gas to RNRL.