Govt to expand legal team for Ambani gas dispute

The government today decided to strengthen the legal team that would argue its case in the Ambani gas dispute before the Supreme Court, starting next week.     

A panel of ministers headed by Finance Minister Pranab Mukherjee today took stock of the dispute and decided to strengthen the legal team that is headed by Mohan Parasaran, additional solicitor general.     

Mukherjee met Law Minister M Veerappa Moily and Petroleum Minister Murali Deora to get an update on the case, hearing on which is to begin in the apex court from October 20.    

"Mukherjee wanted to know what is happening in the case and so the meeting was called," Deora told reporters after the meeting. "Whatever assistance is required will be given."    

Sources in the know said the panel took stock of how the government's interest was being protected.    

They also said that besides government lawyers, even private senior counsels may be enrolled to protect the government's interest. The government filed a special leave petition in the Ambani gas dispute, asserting its right to decide on the utilisation and pricing of gas.    

Anil Ambani-led RNRL is seeking gas from Mukesh Ambani-run RIL at a price of $2.34 per mmBtu based on a 2005 family agreement, but RIL has refused supply saying the price needs government approval. The government had in 2007 approved $4.20 per mmBtu as price for gas from RIL's KG-D6 fields.

Sources in the know said that at least one senior government lawyer may be appointed and one more senior lawyer, either from the government or private sector, may be included.     

The legal team expansion will be with concurrence of Parasaran, who will continue to remain at the centre of the case. If Parasaran requires any additional assistance in the form of more lawyers that would be provided.     

Industry sources said it was being debated if SG Gopal Subraminum may also included in the team.     

The government has allocated the initial 40 mmscmd of output from KG-D6 among power, fertiliser, steel and LPG units, which are buying the fuel at the approved rate of $4.20 per mmBtu.     

RIL can produce about 65 mmscmd gas but is forced to keep the output at just over 40 mmscmd in absence of government not nominating buyers for additional gas. Output is slated to touch peak of 80 mmscmd before the year end.