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RIL challenges Bombay HC order, moves Supreme Court

RIL challenges Bombay HC order, moves Supreme Court
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First Published: Sun, Jul 05 2009. 09 51 PM IST

Gas row: A file photo of RIL’s Jamnagar refinery. RIL has said in its petition to the Supreme Court that it can’t sell gas from its KG field at a price lower than the $4.2 per mBtu set by the governme
Gas row: A file photo of RIL’s Jamnagar refinery. RIL has said in its petition to the Supreme Court that it can’t sell gas from its KG field at a price lower than the $4.2 per mBtu set by the governme
Updated: Sun, Jul 05 2009. 09 51 PM IST
New Delhi: Mukesh Ambani-led Reliance Industries Ltd (RIL) said it filed a petition to the Supreme Court challenging a lower court order to supply natural gas to Reliance Natural Resources Ltd (RNRL) at a discount to the government-fixed rate.
RIL has also made the government a party in its petition before the apex court challenging the Bombay high court verdict on the gas supply dispute with RNRL, a ‘PTI’ report said.
RIL said in its petition that it can’t sell gas from its Krishna-Godavari field at a price lower than the $4.2 per million British thermal units (mBtu) set by the government. Company spokesman Tushar Pania confirmed that the petition had been filed on Saturday and declined to comment further.
Gas row: A file photo of RIL’s Jamnagar refinery. RIL has said in its petition to the Supreme Court that it can’t sell gas from its KG field at a price lower than the $4.2 per mBtu set by the government. AFP
The Bombay high court ordered RIL, India’s most valuable company, on 15 June to sell gas to Anil Ambani’s RNRL for 44% less than the government-set price. The two companies were asked to reach an agreement within a month, based on the terms of a memorandum of understanding signed in June 2005.
The agreement required RIL to supply 28 million cubic metres of gas per day at $2.34 per mBtu for 17 years, RNRL counsel Mukul Rohatgi had said on 15 June.
The high court had given a clear and unambiguous finding with respect to the price, quantity, tenure and key terms of the gas supply, RNRL said in a separate petition filed at the Supreme Court on Friday seeking implementation of the order.
The dispute was sparked by the splitting of the Ambani family empire in 2005. The court temporarily lifted a ban in January on gas sales from RIL’s largest field, paving the way for supplies to fuel-starved fertilizer and power companies, designated by the government as priority customers.
RIL closed 0.8% higher at Rs2,027.65 on Friday closing. The stock has climbed 64% this year, compared with the 55% gain in the benchmark Sensitive Index. RNRL gained 6.8% to close at Rs86.70 on Friday and has advanced 52% this year.
The gas at the field operated by RIL is national property, oil minister Murli Deora had said on 22 June.
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First Published: Sun, Jul 05 2009. 09 51 PM IST