Govt bent rules to favour RIL: CPI leader; Company says it's not true

A snapshot of the arguments between party MP Gurudas Dasgupta and Reliance Industries on gas price

As the Public Interest Litigation filed by CPI MP Gurudas Dasgupta comes up for hearing in the Supreme Court tomorrow, Business Standard brings to you a snapshot of the arguments by both parties so far.

Dasgupta has alleged that no due diligence was done by the government while increasing the price of natural gas.

The apex court sought response from BP Exploration Limited, NIKO Resources Ltd and Ministry for Petroleum & Natural Gas on the PIL filed.
 

On gas pricing

 

Gurudas Dasgupta

Government should withdraw decision to double natural gas price to $ 8.4 per mmBtu.                                          

 

Reliance Industries
Gas should be priced on arms lenght basis. 

 

RIL hoarding gas  

 

Gurudas Dasgupta

RIL reduced production deliberately to get a good price next year 

 

Reliance Industries

RIL currently producing from  D1, D3 fields which saw large pressure drop and water ingress in the wells drilled

 

Windfall for RIL 

Gurudas Dasgupta
Ill-disguised attempt to give huge profits to RIL

Reliance Industries
Wrong. Public sector companies produce 70% of nation’s gas while KG D6 block's production is mere 15% 

 

RIL should deliver the shortfall in production at $4.2 mmBtu

Gurudas Dasgupta

The shortfall in gas supplies should be made good at the old rate of $4.2 mmBtu RIL should be fined for non-achievement of production target 

 

Reliance Industries
There is no commitment to supply a fixed quantity of gas at an agreed price

 

Higher subsidies due to higher gas prices

 

Gurudas Dasgupta

Increased subsidy burden for fertiliser and power to be Rs 2.2 lakh crore during 5-year period

 

Reliance Industries

By 2015-16 India would need 169 mmscmd of gas. Current gas production is 55 mmscmd. This will  result  in more gas imports and higher subsidies

 

Price increase to impact power and fertiliser sector

 

Gurudas Dasgupta

Increase in cost of power by Rs 2 per unit and fertiliser by Rs6,000 per tonne

 

Reliance Industries

At new gas price, these sectors would get gas at competitive price compared to imports of use of alternate fuels like LNG and Naphtha