The Hindu Business Line : RIL `misleading' Govt on gas price issue, says RNRL

The Anil Dhirubai Ambani Group (ADAG) controlled Reliance Natural Resources Ltd (RNRL) on Sunday alleged that Reliance Industries Ltd (RIL) was "deliberately misleading" the Petroleum Ministry by withholding the full facts of the gas price case.

A statement issued by RNRL said that the full facts of the case were being withheld by RIL to enable it to renege its binding gas supply arrangement with RNRL.

"The gas supply arrangement between RIL and RNRL was finalised as early as the first half of 2004. RIL chose not to communicate the same to the Ministry of Petroleum and Natural Gas till recently," the statement added.

RNRL also said that the price at which it is supposed to receive the gas was fixed in 2004, at the same time and on the same basis as the NTPC price, which was discovered through an open and transparent international competitive bidding process.

"As per the legal opinion obtained by RNRL, the gas price is in full compliance with the terms of the production sharing contract including Article 21.6," the statement said.

The statement added that RIL was "deliberately concealing" the fact that RNRL's gas price is based on an arm's-length transaction made in 2004.

"This transaction has since become a formal and integral part of the demerger scheme approved by RIL's two million shareholders and the Bombay High Court, for which all records are available in the public domain."

More Stories on : Petroleum | Corporate Disputes | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon `gateways' in deficit as rains keep away

RIL `misleading' Govt on gas price issue, says RNRL

Cost savings, price hikes lift Hind Lever net 35%

Short breaks a hit with domestic tourists

ITL in talks to offload 10 pc stake

Monsanto monopoly over Bt cotton ends

Sensex likely to move in narrow range

Infosys staff to get jubilee bonanza

Banks want roll-back of CRR interest rate decision

Lalu promises relook at superfast fares