The Hindu Business Line : No stay on RIL gas sale order

Settlement awaited

The Court allowed the Government to go ahead with the process of fixing the price of gas.
Division bench adjourned the hearing on RIL’s appeal against the previous interim order.

Our Bureau

Mumbai, July 18

The Bombay High Court on Wednesday refused to stay the interim order barring Reliance Industries Ltd from selling natural gas from its KG basin field to any other firm apart from the Anil Ambani- controlled Reliance Natural Resources Ltd and the public sector NTPC.

However, the Court allowed the Union Government to go ahead with the process of fixing the price of gas. A division bench comprising Mr Justice J.N. Patel and Mr Justice Ahmed Sayed also adjourned by eight weeks, the hearing on RIL’s appeal against the previous interim order.

Fuel Bill

Many fertiliser and power companies across the country are eagerly waiting for the settlement of the issue so that they can switch over to natural gas and reduce their fuel bill. The Court said that the Government can go ahead with the process of fixing the gas price as per the contract for the field without any prejudice.

RIL had challenged interim order of Mr Justice A.M. Khanvilkar, restraining it from selling natural gas produced in Krishna-Godavari gas field, which RNRL says has been committed to it for its power plants.

Mr Harish Salve, counsel for RIL, argued that RNRL was seeking gas not only for its Dadri project but also intended to sell it through its affiliate companies, he said.

After hearing both the counsels, Justice Mr Patel said that both the companies should come to some settlement as it was taking a lot of Court’s time. In May, Justice Mr Khanvilkar had restrained RIL from entering into any contract for supplying to a third party the 28 mmscmd committed by RIL to RNRL under the demerger scheme.

RNRL had alleged that due to lack of commitment to supply the gas on RIL’s part its 7,480-MW Dadri power project could not be set up.

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