Govt favouring RIL by fixing gas price: RNRL counsel

Our Bureau

Mumbai, Jan. 27 The Union Government had stated before Parliament, during a question and answer session, that it can only value the gas from KG basin and not determine its price, said Mr Ram Jethmalani, Senior Counsel for Reliance Natural Resources Ltd.

He was arguing before a division bench of Bombay High Court in RIL versus RNRL case.

Mr Jethmalani said that when an oilfield contractor enters into a production sharing contract with the Government, the Government cannot fix the gas price.

However, as the Government is soon going to face elections and it cannot afford to lose it, it is indulging in corruption and favouring RIL by fixing the gas price, he said.

The court asked Mr Jethmalani if RNRL can utilise the gas at plants other than Reliance Energy Ltd’s Dadri plant.

Mr Jethmalani responded that the other plants are smaller, therefore, it cannot use such (28 MMSCMD) an amount of gas. If RNRL was allotted gas it would generate electricity and make higher profit from the gas.

He said that for the Dadri plant, REL has been able to raise Rs 2,000 crore from international markets.