`No loss to centre & RIL if gas supplied at USD 2.34`

Last Updated: Tuesday, December 8, 2009 - 12:38

New Delhi: Anil Ambani-led RNRL today
contended before the Supreme Court that it has an
"unqualified" right to get gas at USD 2.34 per unit for 17
years from RIL which will along with the Government not suffer
any loss at this rate.

"There would be no impact on the Government at all and
it would suffer no loss whatsoever. RIL would also make a
profit of Rs.30,000 crore at this rate," RNRL said in an
affidavit before a Bench headed by Chief Justice K G
Balakrishnan.

"In case the Government values the gas at 4.20 per
mmBtu and RIL sells gas to RNRL at the price of 2.34 per
mmBtu, the Government would still obtain its full share of the
profit on gas," it said.

"RNRL submits that it has an unqualified right to get
28 MMSCMD for 17 years at the price of USD 2.34 mmBtu," the
company argued.

It pleaded that RIL is trying to inflate its profit by
saying that the gas can only be sold at USD 4.20 per unit.

"The submission of RIL that the gas can only be sold
at 4.20 per unit is only an attempt to inflate its profit. The
Government would obtain no additional benefit from such
pricing and the net effect would only be enrichment of RIL,"
the company said in its four page affidavit.

Raising objections on the Government`s stand that the
arrangement for the supply and pricing of gas for NTPC cannot
be equated with a private agreement between RIL and RNRL, the
Anil Ambani group has accused the Centre of deliberately
causing "confusion" and hurting the interests of public sector
NTPC.

The Government had in its affidavit filed before the
apex court on December 2 argued that a private accord between
RIL and RNRL could not be equated with that of any arrangement
for NTPC.
The Ambani brothers are engaged in a bitter court
battle over the supply and price of the gas from KG Basin.
While RNRL is seeking gas at a committed price of USD
2.34 per unit, RIL says it cannot honour the commitment made
in the 2005 family agreement due to government`s pricing and
gas policy.

PTI



First Published: Tuesday, December 8, 2009 - 12:38

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