Oil ministry may file for defamation against RNRL

Oil ministry may file for defamation against RNRL
PTI
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First Published: Thu, Aug 27 2009. 12 29 AM IST

Gas controversy: An RIL platform in the Krishna-Godavari basin.
Gas controversy: An RIL platform in the Krishna-Godavari basin.
Updated: Thu, Aug 27 2009. 12 29 AM IST
New Delhi: The petroleum ministry is mulling filing a defamation suit against an Anil Ambani Group firm for persisting with “false claims” pertaining to government revenues from Reliance Industries KG-D6 fields.
The ministry is contemplating seeking law ministry view on slapping the suit on RNRL over a claim that government share from KG-D6 initially will be just Rs500 crore, while RIL will earn a super-normal profit of Rs49,500 crore.
Gas controversy: An RIL platform in the Krishna-Godavari basin.
Sources in the ministry stated that RNRL and its executives stuck to this claim despite the government clarifying in a written statement that its revenues from KG-D6 over the life of the field would be more than Rs84,000 crore, with a clear objective to “malign and tarnish its image.”
The file prepared for the same notes that government’s take from KG-D6 in the first year of gas production will be Rs700 crore at a minimum output of 40 mmscmd. At peak output of 80 mmscmd, likely next year, the government will get Rs1,200 crore in royalty and profit share.
Sources said the file is likely to go before petroleum secretary R S Pandey and petroleum minister Murli Deora before it is sent to law ministry for opinion.
In any case, the earnings will be more than Rs500 crore, they said pointing out that royalty at the $4.2 per mmBtu approved price alone came to Rs541 crore in the first year.
Meanwhile, sources said Congress MP K S Rao wrote to the Prime Minister on 24 August stating that the Anil Ambani group was using the country’s top two law officers to further its business interests.
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First Published: Thu, Aug 27 2009. 12 29 AM IST
More Topics: Ambani | Oil Ministry | RNRL | KG basin | Lawsuit |