The Hindu Business Line : Govt stand in gas row is dishonest and collusive: RNRL

“If the Government is made a party, RNRL’s right to full discovery, inspection and cross-examination will have to be preserved,” RNRL said, and assured the court that it will not waste any time in the disposal of the matter. “The fear (of rigorous cross-examination) made the Ministry of Petroleum and Natural Gas (MOPNG) withdraw their affidavits before the Bombay High Court (in the same case). MOPNG knew that the affidavits filed before the Bombay High Court were false and hence withdrew all their affidavits,” RNRL said.

RNRL also opposed RIL’s stand that the supply of gas at $2.34 per mBtu was not feasible.

RNRL questioned the Government approval to RIL for the increase in capital expenditure (capex) from Rs 10,000 crore to Rs 36,000 crore to enhance gas production from 40 to 80 mmscmd.

The affidavit said this approval by the managing committee, including the Director General of Hydrocarbons, Mr V.K Sibal, was under CBI investigation. "It is thus evident that even RIL's inflated capex will result in a per-mBtu cost of $1.28. RIL is, thus, making tremendous profit even at $2.34," RNRL said. "The fertiliser and power industries, which are reeling under recession, can ill afford to pay a higher price to fill the pockets of RIL."

The RIL senior counsel, Mr Harish Salve, and the Additional Solicitor General, Mr Vivek Tankha (representing the Government), said they will study the RNRL affidavit and file their objections if needed.

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