Business OpportunitiesOilMin not to let RIL off hook for MoU with ADAG
The government has not let Reliance Industries off the hook for signing a private MoU with a firm run by the Anil Ambani Group to divide entire gas volumes from KG basin fields, thus holding industrial development to ransom, the petroleum ministry said today.
- Nifty @ 4,600 in sight - Rake scarcity hits coal supply to NTPC Kaniha - Pvt power cos concerned at RNRL getting gas at lower rates - NTPC wants to pay marketing margins - NTPC to invest Rs 15,968 cr to generate 2,320 Mw more by 2015 - Coal shortage hits power output at NTPC Kaniha
“We for the first time got to know from the Bombay High Court judgment (of last month) that all volumes beyond 28 mmscmd committed to (Anil Ambani’s) RNRL and 12 mmscmd to NTPC were divided between RIL and RNRL in 60:40 ratio,” Petroleum Secretary R S Pandey told reporters here.
Peak gas out from KG-D6 fields may be 100-120 million standard cubic meters per day.
“The MoU also states that they are free to price the volumes beyond those locked in litigations. So practically, RIL may transfer KG-D6 gas for use in its refineries and petrochemical plants at $1 per mmBtu,” he said.
Other industries will be dependent on the mercy of RIL and RNRL to get the scarce fuel, he said, adding that the government filed a petition in Supreme Court to get the MoU declared null and void to prevent such appropriation of natural resource through private agreements.
“We have so far not taken any action against RIL as it has so far not done anything in contravention to the gas pricing and utilisation policy as derived from Production Sharing Contract,” Pandey said. “I cannot today say that no action will be taken.”
The Production Sharing Contract clearly says that Government will frame a gas utilisation policy and approve pricing, Pandey said.