Government likely to intervene in RIL-RNRL row
01 Jul 2009
The government is likely to intervene in the Reliance Industries-Reliance Natural Resources dispute if the Mukesh Ambani-controlled RIL moves the Supreme Court against the Mumbai high court ruling. The government's stand will depend on the details of RIL's appeal in the court, according to a report by Moneycontrol.
The government may also reconstitute the empowered group of ministers, depending on the petroleum and fertiliser ministries' inputs, the report quoted unnamed sources as saying.
However, the terms of reference of any new eGoM are likely to remain the same as the previous one, the report further says.
It has been widely reported that RIL is preparing to move the Supreme Court early next month challenging the Bombay high court verdict on the dispute between rival companies controlled by the two brothers.
On 15 June, the high court ordered RIL to supply 28 million units of gas to Anil Ambani's group firm RNRL from RIL's KG basin fields at $2.34/mmbtu, 44 per cent lower than the government-approved rate, for 17 years.
On Monday, RNRL claimed that RIL representatives did not turn up for the meeting to thrash out details of gas supply, while an RIL spokesperson said, "We have not completed the analysis of the implications of the judgement and the process of consultation with legal advisers. We will decide upon further steps after competition of this process."
According to another report, the government is contemplating penal action against RIL for committing 28 million standard cubic metres of gas per day (mmscmd) from its KG basin block to RNRL at the price of $2.34 per million British thermal units (mmBtu) agreed as part of the Ambani family settlement without the permission of the government.
"RIL is merely a contractor for the KG basin block (D-6) and not the owner. Two promoters (Mukesh Ambani and Anil Ambani) can't divide a national property between themselves without the government's approval. The matter is being examined," The Economic Times quoted 'a senior official in the know' as saying.
