The Hindu Business Line : Reliance pushes for oil retail sale compensation

Seeking help
RIL has sought Government support, similar to those given to state-owned oil marketing companies, to offset revenue loss it incurs on selling petrol and diesel below actual cost. RIL has been seeking Government support in the form of oil bonds or any other form.

BIZ, LAW PARTNERSHIP: The Union Law Minister, Mr H.R. Bharadwaj (second from left), with the Reliance Industries Chairman, Mr Mukesh Ambani, and the Assocham President, Mr Anil K. Agarwal, at a meet on `Partnership between business and law' in the Capital on Monday. — Kamal Narang

New Delhi , Aug. 21

The Chairman of Reliance Industries Ltd (RIL), Mr Mukesh Ambani, is understood to have sought Government support on selling petroleum products at below cost price in the domestic market. Mr Ambani, who was in the Capital on Monday, is said to have discussed the issue with the senior Petroleum Ministry officials, including the Petroleum Secretary, Mr M.S. Srinivasan.

While declining to comment on the details of the meeting, sources told Business Line that Mr Ambani appraised the Ministry about the current oil retail scenario.

According to sources, RIL has sought Government support, similar to those given to state-owned oil marketing companies, to offset revenue loss it incurs on selling petrol and diesel below actual cost. RIL has been seeking Government support in the form of oil bonds or any other form.

New retail stations

The Petroleum Ministry had recently ruled out any kind of financial support for private oil marketing companies. Mr P. Raghavendran, President Refinery Business, RIL, said the company has temporarily suspended commissioning of new retail stations as it was suffering huge revenue loss on sale of petroleum products.

Reliance now operates 1,280 retail outlets in the country.

Mr Raghavendran said 400 retail fuel outlets are ready for commissioning, but "we have put them on hold owing to the losses we are suffering on domestic sale of petrol and diesel." RIL is providing support to its dealers to overcome cash flow problems, he added.

Investor confidence

Earlier in the day, Mr Ambani, in his keynote address at a conference jointly organised by the Assocham and Society of Indian Law Firms (SILF), said that there was a need for a stable and transparent rule of law to instil confidence in the investors. He pointed out that the present global trend is to have specialisation in different areas of law according to the requirement of not just the subject but also the region and country.

Mr Ambani also said that with almost 60 per cent of the $250-billion global legal work being outsourced, India could tap the opportunity to garner for itself around $20 billion of the legal outsourcing business. The cyber law is one area, in particular, that is set to open greater opportunities, he added.

Speaking at the function, the Minister for Law and Justice, Mr H.R. Bhardwaj, said, "India is striving to improve facilities for arbitration and quick resolutions of dispute."

The Minister pointed out that the establishment of the International Centre for Dispute Resolution to offer round-the-clock service is expected to speed up the process. In due course it is expected to ease the load of litigation in courts and help companies seek out-of-court settlements through the process of reconciliation. He added that in the coming years there would be better legal infrastructure in place through e-governance.

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