RIL had opposed govt role in gas sale: Counsel to SC
Press Trust of India / New Delhi Oct 22, 2009, 15:06 IST
Reliance Industries today 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 2007.
Resuming arguments over its dispute with Anil Ambani Group firm Reliance Natural Resources Ltd, senior counsel 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 K G Balakrishnan asked if the Gas Utilisation Policy was notified like the Industrial Policy, Salve said it was not and customers/sector identified in the same were passed on to RIL in 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, 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.
RIL 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, Salve said.
However, if it is forced to sell gas at 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.
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