Make NTPC party to case with RIL: RNRL to SC:

In another legal demand in the D6 gas controversy, Anil Ambani’s Reliance Natural Resources Ltd (RNRL) has filed an application in the Supreme Court seeking to make government-owned NTPC Ltd a party to its case against arch-enemy Reliance Industries Ltd (RIL).

The other day, it had asked the SC to make it a party to NTPC’s case against RIL.

Another group company, Reliance Infrastructure, has written to RIL stating that it would not pay any marketing margin to the latter for gas by RIL supplied to Reliance Infrastructure’s Samalkot power plant in Andhra Pradesh.

Stating that the gas supply to its unit was not a result of any marketing undertaken by RIL or any other agency (gas allocation is a government decision), Reliance Infrastructure’s letter said the charge was unwarranted. RIL had claimed $0.135 per million British thermal unit (mBtu) as marketing margin from the company.

RNRL’s application today to the SC said NTPC and it were “taking the same stand to oppose the dishonest stand taken by RIL to avoid its obligation to supply gas to both the companies”. RIL is seeking to deny supply of gas to RNRL on the ground that the gas utilisation policy announced by the Union government in 2008 overrides the existing contracts. RIL cannot sell the gas at a price less than the $4.20 per mBtu approved by the government.

RNRL said “the gas utilization policy does not in any manner affect or prejudice the existing commitments made by RIL to supply gas. If the supply of gas was subject to any gas utilisation policy, RIL would not have even submitted a bid in response to the international tender floated by NTPC in the year 2002 or made commitment to supply Gas to RNRL”.

The petition also said RIL and the government were fully aware that RIL was entitled to sell gas that comes to its share under the production sharing contract. It said NTPC’s petition had said the decisions taken by the EGoM and relied upon by RIL as a defence in the NTPC suit, are without prejudice to the pending proceedings in the RNRL case and the NTPC case. “NTPC is taking the same stand as RNRL that RIL’s commitment to supply gas to NTPC is not affected by any decision taken by the government relating to either gas utilisation or price and that RIL remains bound to supply gas to NTPC at $2.34 for 17 years.” RNRL also said a decision in its case would have a direct impact on the pending suit filed by NTPC against RIL for enforcement of its rights. “In case NTPC is unable to seek supply of gas from RIL for any reason whatsoever, it would stand to lose an amount in excess of Rs 30,000 crore.”