Nothing wrong with earning profit from RIL gas, says RNRL
Press Trust Of India / New Delhi Jul 16, 2009, 00:08 IST
Reliance Natural Resources Ltd (RNRL) has questioned the propriety of Reliance Industries Ltd (RIL) in raising the issue of profits that it may earn out of the gas it gets from the Mukesh Ambani-run company.
“The profits that RNRL may make is not a concern of RIL. In fact, RNRL was created just so that it could earn such a profit. Otherwise there was no need to create such an entity,” RNRL said in its affidavit filed in the SC on Tuesday.
The SC had last week issued notices to both RNRL and RIL, which had made government an intervener, on their cross-petitions wherein the former wanted the high court order on gas supply by RIL to be binding.
RIL had challenged the judgement that asked it to supply 28 mmscmd of gas at the rate of $2.34 per mmbtu, a price that is 44 per cent lower than the $4.2 fixed by the government.
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