RIL trying to inflate profit by demanding higher price: RNRL
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Last Updated: Tuesday, December 08, 2009, 18:00
  
New Delhi: Anil Ambani-led RNRL on Tuesday accused the Mukesh Ambani group of scuttling its "unqualified" rights to get gas at USD 2.34 per unit from the KG basin by telling the Supreme Court that RIL was demanding a higher price despite being assured of a whopping Rs.30,000 crore profit at this rate.

"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 will obtain no additional benefit from such pricing and the net effect will only be enrichment of RIL," RNRL told a Bench headed by Chief Justice K G Balakrishnan.

It contended that the supply of gas at USD 2.34 mmBtu for 17 years will not cause any loss either to the government or Mukesh Ambani group.

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

"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 will still obtain its full share of the profit on gas," it said before the Bench also comprising Justices B Sudershan Reddy and P Sathasivam.

The Anil Ambani's company alleged that RIL is trying to impose a unilateral term requiring government approval of the price which it claimed was not part of the contract between them.

"RIL is seeking to impose a unilateral term requiring government approval of price citing the terms of the PSC (Production Sharing Contract)," senior advocate Mukul Rohatgi, appearing for RNRL said adding "RNRL has an unqualified right to get 28 MMSCMD for 17 years at the price of USD 2.34 mmBtu."

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.

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.

Rohatgi submitted that the price of USD 2.34 per unit for supply of gas to NTPC by the RIL is the benchmark and RNRL should also be supplied at the same rate.

PTI


First Published: Tuesday, December 08, 2009, 18:00


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