The Hindu Business Line : Govt seeks to be ‘intervener’ in KG gas suit

Mumbai, April 11 The Union Government, through the Petroleum Ministry, has sought to be a party in the ongoing court case between Mr Mukesh Ambani-led Reliance Industries Ltd and Reliance Natural Resources Ltd (RNRL) of the Anil Ambani group over sharing of natural gas from the Krishna-Godavari basin.

The Union Petroleum Ministry on Friday moved the Bombay High Court, filing a notice of motion wanting to be an ‘intervener’ in the case.

National property

Senior Counsel for the Government of India, Mr T. S. Doabia, said the Government has sought the intervention as natural gas is national property, and the government has a say in it.

The petition wants the vacation of the interim order of May 3, 2007 that restrained RIL from creating any third party rights and use or supply gas committed to RNRL.

The Government, in its petition, said it is a major stakeholder under the Production Sharing Contract (PSC) for RIL’s K-G basin gas. The PSC is between the Government and RIL. A private dispute between the RIL and RNRL cannot threaten the interests of the Government, said the petition.

Govt stand

The petition says that Bombay High Court has recognised the Government’s interests, not only in the usage of the gas to the maximum benefit of the people, but also in the royalties, taxes and share of profits. As far as the fixation of price of natural gas is concerned, the Government has powers to check the rational basis for fixing the floor price. The gas pricing factor cannot be decided in isolation.

The High Court has adjourned the case for April 29. RNRL will file its reply to the Government’s application.

Mr Mukul Rohatgi, counsel for RNRL, said the case is between RIL and RNRL and that Union Government has nothing to do with the case.