RIL moves SC over gas pricing; agrees to abide by production pact with government
04 Jul 2009
Reliance Industries today moved the Supreme Court challenging the Bombay High Court judgement directing it to supply gas from its KG-D6 gas field to Anil Ambani Group firm RNRL at $2.34 per mmbtu, against the government set price of $4,49 per mmbtu.
RIL said the high court had erred in deciding the quantity, tenure and price of gas to be supplied to RNRL-controlled power plants.
Reliance Industries is also reported to have agreed to abide by the production-sharing agreement (PSC) signed with the government on the KG-D6 gas field.
The move comes close on the heels of RNRL filing a special leave petition in the SC seeking direction to RIL to restrain from signing gas pacts with other power companies.
RNRL on Friday filed the petition seeking a directive from the Supreme Court restraining RIL from supplying 40 mmscmd of gas to others and signing supply contracts for the same.
RNRL wants RIL to sign contracts only with the company as of now, and at the HC-directed price of $2.34 per mmbtu, for 17 years. The company has sought supply of 28 mmscmd of gas and a stand-by agreement for an additional 12 mmscmd.