RNRL open to NTPC receiving first tranche from KG block
Our Bureau
Mumbai, Jan. 19 Reliance Natural Resources Ltd (RNRL) of the Anil Ambani group, which is engaged in legal battle with Mukesh Ambani’s Reliance Industries Ltd for natural gas from KG basin, is open to NTPC receiving the first tranche of 12 mmscmd from the block as an interim arrangement. The gas field is likely to on stream by February.
Allowing NTPC to be first beneficiary is a major departure from RNRL’s earlier stand, where it had insisted that it had the first right over the gas.
The case, over sharing and pricing of gas from KG block, is being fought in the division bench of the Bombay High Court. Shortly the bench is likely to give an interim order in the case.
Mr Mukul Rohagi, counsel for RNRL, told the division bench of the High Court on Monday that as an interim arrangement until final judgment is pronounced, NTPC would receive the gas. If any additional gas gets produced then it can be given to the public sector units, he said. Counsel for RIL and the Union Government did not oppose the proposal.
The Additional Solicitor General of India and counsel for the Government, Mr Mohan Parasaran, in his arguments before the court said the decisions of the empowered Group of Ministers (eGOM) of selling KG basin gas for $4.20/mmbtu (million British thermal unit) is similar to the cabinet decision. As the decision had been made by an “empowered” group of ministers, in essence, the decision has been made by the Cabinet, as the group has been delegated to make the decision of pricing and supply on the Cabinet’s behalf, he said.
Mr Parasaran said that as and when NTPC will approach the Government for its price approval for KG basin gas, the company would be told that it can buy gas at a price not less than $4.20/mmbtu, he said.
Mr Ram Jethmalani, Senior Counsel for RNRL, said if NTPC officials agree to pay $4.20/mmbtu of gas rather than $ 2.34 mmbtu, which is contracted price with RIL, NTPC will have to pay an additional Rs 30,000 crore for 12 mmscmd of gas: “It would be more bigger scam that Satyam. I’m ready to place these issues in front of the court in an affidavit. All the NTPC directors who are a party to the decision can be held responsible under Prevention of Corruption Act,” he said. The case has been adjourned till Thursday.