RNRL seeks to join NTPC-RIL gas row

In another twist to the multifaceted litigation in the Supreme Court over gas prices, the Anil Ambani group company, RNRL, today sought to implead itself in the case between public sector NTPC and Reliance Industries Ltd. RNRL’s application says the issues raised in the NTPC-RIL case directly affects its own case against the Mukesh Ambani-led RIL. 

RNRL says seven issues are common in the appeals. Among these: the impact of the Empowered Group of Ministers’ decision of September 12, 2007, on gas utilisation policy and fixing the price on existing commitments; whether the price at which RIL has agreed to supply gas is required to be approved by the government; RIL’s attempt to “wriggle” out of its commitment to supply gas to NTPC; RIL’s conduct in allegedly delaying implementation of the NTPC and RNRL gas-based power generation facilities, and denying relief to the nation from power cuts. 

Both RIL and RNRL have also filed cross-appeals in the Supreme Court on a June 15 judgement of the Bombay High Court that accepted RNRL’s argument that RIL give gas to it at $2.34 per mBtu. The apex court would commence hearing on October 20 on these appeals, as also a related petition filed by the government.

RNRL says RIL is relying upon the pleadings in the RIL versus RNRL case to support its defence against NTPC. The issues which arise in the cases are therefore common, the application asserted. 

NTPC had separately moved the Supreme Court on September 5, challenging a Bombay HC decision that allowed RIL to amend its petition on the gas dispute with it, citing the government’s pricing policy. A bench of the HC had allowed amendment in the petition, wherein RIL had said the government’s pricing policy would frustrate its contract with NTPC.