The Hindu Business Line : No delay in RIL gas pricing decision: Minister

The Government on Wednesday reiterated that there was no delay in decision making on its part on the pricing issue of gas supply to Reliance Natural Resources Ltd (RNRL) from Reliance Industries Ltd (RIL).

Making a statement in the Lok Sabha on the issue of gas supply to the proposed Dadri Power Plant of NTPC and Reliance Energy Ltd, the Petroleum Minister, Mr Murli Deora, said there has been no delay on the part of the Ministry.

No bearing on output

"The time taken by the Government to convey its decision regarding the gas price formula approval has no bearing on the likely production date of the fields," he said in a statement, which was read by the Minister of State for Chemicals and Fertilisers, Mr B.K. Handique.

Refutes allegation

The Minister was making a statement after the Samajwadi Party members alleged in the Lower House that the Government was delaying the approval of gas sales price. The statement said that the Petroleum Ministry took less than two-and-a-half months since receipt of RIL's proposal to decide on the issue.

"It may be noted that the transaction between RIL and RNRL is part of their de-merger agreement and does not meet Production Sharing Contract criteria of Arms-Length sales.

Clarifications

"The Government after seeking certain clarifications and examination of the proposal conveyed its decision to RIL on July 26. Therefore, it is incorrect to say that the Government took almost a year to convey its decision," the statement said.

RIL had proposed to sell gas to Anil Ambani Group's company at $2.34 per million British thermal unit, as against $4.75 per mBtu that it charges for gas from Panna/Mukta and Tapti fields.

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