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| Ministerial group decides to take up NTPC's concerns |
| Press Trust Of India / New Delhi Aug 26, 2009, 00:47 IST |
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A panel of ministers is today believed to have decided to incorporate in the government’s petition before the Supreme Court, power PSU NTPC’s claim for natural gas from Mukesh Ambani-led RIL at a price committed in 2004.
The Group of Four Ministers or G-4, headed by Finance Minister Pranab Mukherjee, had its final meeting today and decided to either withdraw and amend the Special Leave Petition or file a separate affidavit or an interlocutory application this week, a top source said.
In its present form, the government is seeking annulment of that part of the Ambani family MoU which provides for dividing gas from RIL’s KG-D6 fields between companies run by brothers Mukesh and Anil Ambani. Law Minister Veerappa Moily said the NTPC issue had been sorted out and there will be no more meetings of G-4. “That is the stand which we have sorted out,” he told reporters here.
Moily said the petroleum ministry has already filed an SLP and “if any amendment is to be filed, they will do it”.
Asked what was the specific outcome, he said: “That you can see in the Supreme Court...Now the ball is in its court.”
“(The) Government is committed to protecting NTPC’s interest and top law officers are currently deliberating on how to incorporate its claim in the revised SLP,” he said.
The issue was deliberated at length at the meeting of G-4 ministers that comprises power minister Sushilkumar Shinde and petroleum minister Murli Deora, besides Mukherjee and Moily.
NTPC Chairman and Managing Director R S Sharma, besides top law officers, were also present at the meeting today.
The source said the amendment to the SLP, which may be by way of withdrawing the original and filing a fresh or filing an additional affidavit, was likely to be done this week. The Supreme Court is to hear the gas dispute on September 1.
NTPC has taken RIL to the Bombay High Court, seeking supply of 12 million standard cubic metres per day gas for its Kawas and Gandhar expansion projects at $2.34 per mBtu, the same price quoted by Anil Ambani Group firm RNRL to claim at least one-third of the peak output of 80 mmscmd from KG-D6.
The source said the revised SLP may state that if NTPC’s claim is upheld in the courts, then the government will force RIL to sell the gas at rates 44 per cent lower than its approved rate of $4.2 per mBtu. However, RIL will be made to pay royalty, profit petroleum and taxes at $4.2 rate.
NTPC to file plea in SC
Meanwhile, NTPC will file a special leave petition (SLP) in the Supreme Court this week for procuring gas from Reliance Industries’ KG-D6 at the contracted price of $2.34 per mBtu.
“We will file SLP (in the Supreme Court) within the next 6-7 days,” Power Secretary H S Brahma told reporters here today.
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