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Our Bureau

Mumbai, April 29 The Reliance Industries Ltd-controlled gas fields in the Krishna-Godavari basin could go on stream by August, said Mr Harish Salve, Senior Counsel for RIL on Tuesday.

He was arguing at the Bombay High Court in the ongoing case between RIL and Reliance Natural Resources Ltd (RNRL) over sharing of natural gas from KG basin.

RIL wants vacation of the stay, given in the interim order of May 3, 2007, of the High Court, which has restrained RIL from creating any third party rights and use or supply gas committed to RNRL to any other party.

Contesting the interim order, Mr Salve said that the delay in using the gas from the KG basin fields was against public interest, as the gas would be used as a clean fuel for public transportation.

He also pointed to the fact that RNRL power plants would be coming up in three years time, therefore, there was no point in restraining the use of gas in 2008.

Mr Salve citing industry experts’ advice said that the gas must be evacuated from the gas field at an optimum rate. If the gas flow is curtailed then it could be lost forever, he said.

The counsel for RNRL, Mr Mukul Rohatgi, said that the company was willing to receive the gas and trade it, provided a bankable gas supply agreement was reached between RIL and RNRL.

RNRL’s contention right through the case has been that the current gas supply agreement, which exists between the two companies, is unbankable.

The Union Government through the Union Petroleum Ministry on April 11 had moved the Bombay High Court and had filed a notice of motion, wanting to be an intervener in the case. In today’s proceeding, the matter did not come up for argument.

More Stories on : Courts/Legal Issues | Petroleum | Reliance Industries Ltd

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