Deora meets PM; explains stand on gas pricing row

Oil Min had written to PM last week saying Ambani family MoU for gas supply by RNRL to RIL will "harm the public interest"     

Petroleum Minister Murli Deora today called on Prime Minister Manmohan Singh and apprised him of the stand his ministry has taken in the Supreme Court in the ongoing gas supply dispute between the Ambani brothers.     

Deora is believed to have explained the Oil Ministry's position on gas pricing and utilisation.     

Last week, responding to comments sought by the Prime Minister's Office on a letter from industrialist Anil Ambani, the ministry had written to Singh saying that the Ambani family MoU that provides for RIL to supply gas to RNRL will "harm the public interest."     

 

Anil had written to the Prime Minister on July 15 seeking a direction to the Oil Ministry to stop favouring Reliance Industries in a commercial dispute between two companies.

The Bombay High Court's June 15 order that upheld the MoU, gives "precedence to a private family MoU over the government's rights under the PSC, the policies approved by the Government and the Constitution of India," the Oil Ministry letter to PMO said, seeking to explain the need for government to move the Supreme Court.     

The apex court will on September one take up for consideration, the government's petition challenging the High Court order.