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| Well within rights to petition SC: Centre |
| Press Trust Of India / New Delhi Oct 20, 2009, 00:12 IST |
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Government says it owns natural gas in the country and RIL, RNRL must abide with EGoM policies.
The government today told the Supreme Court that it was well within its rights to file a petition in a gas dispute between two corporate houses, as its interests had been “prejudiced” by the Bombay High Court.
Replying to Anil Dhirubhai Ambani group firm RNRL’s contention that the government cannot make a plea as it was not a party before the Bombay High Court, the Centre said since the High Court order was clearly “detrimental” to its rights to regulate natural resources, its petition could be maintained with the apex court’s permission.
“The order of the Bombay High Court is clearly detrimental to the government’s ability to regulate natural gas supply and distribution as it privileges a private arrangement over the government’s utilisation policy,” it stated.
Reiterating that natural gas was national property and the government was its owner, the Centre said Mukesh Ambani-run RIL, as a contractor, was bound to utilise and sell the gas from the KG-D6 field in accordance with policies approved by the Empowered Group of Ministers(EGoM).
The government, in its affidavit filed through Oil Ministry Under Secretary S M Sundaram, said this fact was duly recognised by both RIL and RNRL and it was strange that RNRL was seeking to contend that the government had no role in the gas allocation pursuant to the family MoU with RIL.
Hearing on the Ambani gas dispute, wherein RNRL is seeking gas supply from RIL on the terms of a 2005 family agreement, will commence in the Supreme Court tomorrow.
The High Court had in June ordered RIL to supply gas to RNRL, honouring the family agreement. According to the Centre, it was irrelevant at what stage it came to know about the RIL-RNRL agreement or at what point of time it chose to file the intervention plea in the high court.
RNRL can’t seek to equate its contract with that of NTPC’s contract with RIL, it said, adding that RIL made no proposal to the government for selling 12 mmscmd of gas at $2.34 per mBtu to NTPC, which is a requirement under the PSC.
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