RNRL-RIL gas dispute enters its last lap in SC

RNRL-RIL gas dispute enters its last lap in SC
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First Published: Tue, Dec 08 2009. 10 36 PM IST
Updated: Tue, Dec 08 2009. 10 36 PM IST
New Delhi: The Reliance gas hearing has entered the last lap in the Supreme Court with Anil Ambani led Reliance Natural Resources Ltd (RNRL) expected to end its arguments on Wednesday, which would be followed by Mukesh Ambani’s Reliance Industries Ltd (RIL) making its concluding reply. Both RIL and RNRL are expected to conclude their arguments by next week.
In a related development RNRL has filed a fresh affidavit on Tuesday claiming that the government would not suffer any loss if RIL sells gas to RNRL at the disputed price of $2.34 per million British thermal unit (mmBtu). Further if RNRL gets gas at a cheaper price it would be able to produce competitively priced power, which would benefit the consumers. The affidavit alleges that RIL wants to sells the gas at $ 4.2 mmBtu to purely increase its profits. RIL and RNRL have been slugging it out in the Supreme Court over the pricing and supply of gas from RIL’s D6 block in the Krishna-Godavari (KG) basin to the latter’s power plant.
While RNRL has sought the apex court’s intervention for the immediate supply of 28 million standard cu. m a day (mscmd) of gas from KG D6 at $2.34 (Rs108.8) per million British thermal unit (mmBtu) for a period of 17 years, RIL has opposed this, saying the price is 44% lower than that mandated by the government and it cannot supply gas at a price not approved by the government.
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First Published: Tue, Dec 08 2009. 10 36 PM IST
More Topics: RNRL | RIL | Gas dispute | Oil | Supreme court |