New Delhi: The Supreme Court on Thursday while hearing the gas dispute between the estranged Ambani brothers, quizzed the Mukesh Ambani-controlled Reliance Industies Ltd (RIL) counsel, Harish Salve, that would the country not gain if the natural gas is sold at a lower price from the Krishna-Godavari basin?
Cheaper gas price would mean cheaper gas for fertilizer units, power plants and domestic consumers. On the contrary, only RIL would benefit if the prices are higher, the three-member bench headed by Chief Justice K.G. Balakrishnan queried further.
Salve replied that the fixation of gas price at $4.20 per million British thermal unit was not done arbitrarily. Salve said that if the gas price is more, RIL, which is the contractor, takes lesser time to recover the cost of exploration and the government’s profit increases. On the contrary, if the gas price is lesser, RIL will take longer to recover its costs and the government share of profits decreases.