Business Daily from THE HINDU group of publications
Thursday, October 22, 2009
ePaper | Mobile/PDA Version | Audio | Blogs

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Subscription

Group Sites

Update at 1600 hrs (IST)


Corporate
We opposed Govt role in gas sale: RIL

NEW DELHI: Reliance Industries on Thursday told the Supreme Court it had vehemently protested against the Government taking away its freedom to market gas, whereas Anil Ambani group had sought regulation of fuel sale through a Gas Utilisation Policy in 2 007.

Resuming arguments over its dispute with Anil Ambani Group firm Reliance Natural Resources Ltd, senior counsel Mr Harish Salve said it was RNRL which had in 2007 argued that marketing freedom cannot be allowed to the Mukesh Ambani-run firm and asked the Government to frame Gas Utilisation Policy.

When the three-judge Bench headed by Chief Justice Mr K.G. Balakrishnan asked if the Gas Utilisation Policy was notified like the Industrial Policy, Mr Salve said it was not and customers/sector identified in the same were passed on to RIL in the form of instructions.

The Gas Utilisation Policy was formulated by an Empowered Group of Ministers (a sub-committee of the Cabinet) and the policy was part of the minutes (now part of court records).

On the third day of hearing, Mr Salve told the apex court that RIL will take longer to recover investments it has made in the gas field if it is forced to sell fuel at lower rates.

The company will take 5-5.5 years to recover the $5.8-billion investment made in the KG-D6 gas field if it sells the fuel at Government-approved price of $4.205 per mmBtu, Mr Salve said.

However, if it is forced to sell gas at a lower rate of $2.34 per mmBtu, which RNRL contends that RIL had committed in the 2005 Ambani family agreement, the cost recovery would be over seven years. — PTI

Prev: Rupee sheds 15 paise
Next: KEC International bags Rs 470-cr order


Business Line | NUS Index |



Related Topics
Alliances & Joint Ventures
Announcements
Auditing
Awards & Honours
Bonus Announcements
Company Law
Corporate Bonds
Corporate Disputes
Corporate Governance
Courts/Legal Issues
Diversification
Environment
Human Resources
Interview
IPOs
IPR
Management
Mergers & Acquisitions
New Projects
Open Offers
Outlook
Outsourcing
Overseas Borrowings
Overseas Investments
People
Performance
Preferential Allotments
Private Placement
Regulatory Bodies & Rulings
Research & Development
Restructuring
Rights Issue
Sick Units
Society & Development
Standards & Benchmarks
Taxation
Trade & Labour Unions



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line