Govt has no rights to allocate KG gas, says RIL

The government today told the Bombay High Court, hearing the gas supply dispute between the Mukesh Ambani-led Reliance Industries (RIL) and Anil Ambani’s Reliance Natural Resources (RNRL), that as the owner of gas from the KG basin it has every right to direct RIL whom to supply. However RIL disputed this claim.

The government also said that the empowered group of ministers (EGoM) has decided that RIL will start supplying gas from the KG basin to Anil Ambani’s Dadri power project and other upcoming power plants once it is ready to begin operations. “This is without prejudice to the court case and subject to availability,” the government counsel said.

“RIL is a mere contractor. The government is the owner of the gas. The government will direct RIL who will receive the gas. It has right to decide on gas-allocation policy,” Additional Solicitor General Mohan Parasaran told reporters today outside the Bombay HC.

RIL counsel Harish Salve said, “The government has no right to allocate gas.” He clarified that his client (RIL) was opposed to this stand of the government.