New Delhi: Irked by a media campaign that it would earn a wind-fall profit of Rs 50,000 crore from gas fields, RIL has said the charges were timed to sabotage the government's efforts to get investments in oil sector.
"What makes the current campaign even more calumnious is that it has been launched not only when the matter is subjudice before the Supreme Court, but also seems timed to sabotage the government's entire efforts to get investments under NELP-VIII," RIL said in a letter to Oil Ministry.
Without naming Anil Ambani group, which apart from making public statements had brought out an advertisement campaign alleging that RIL stands to make super-normal profits with the support of the ministry, RIL offered to make any clarification that may be required on the subject.
"The interests of the country and its people are being unfortunately held to ransom by a group of people, who seem to be stopping at nothing, be it slander or blatant perversion of facts, to achieve their questionable aims," RIL's oil business chief PMS Prasad wrote to Oil Secretary R S Pandey.
In its campaign, Anil Ambani group, which is also fighting a legal battle with RIL for getting gas at a price identical to one quoted in the 2004 NTPC tender, had alleged at the rate of the approved USD 4.2 per mmBtu RIL would make huge profits, while government would get a meagre Rs 500 crore.
"In the case of KG D6 gas, the profit petroleum share of the government increases from 10 percent to 85 percent with progressive increase in the investment multiple," RIL said in the letter yesterday, calling the allegations as something that were "plucked out of thin air."
Prasad had also written to Pandey yesterday alleging that state power utility NTPC was misleading the government by denying knowledge of a mandatory price approval that RIL needs to supply gas at a contracted price of USD 2.34 per mmBtu.
The PSC mechanism works on the principle that with lager reserves being established and increasing profitability, the government gets an exponentially higher share in the profit petroleum.
"Against the government's revenue of USD 16.5 billion, the contractor's net inflow over the life of the field is estimated to about USD 10.7 billion, which implies that of the government's take is 61 percent compared to 39 percent of RIL.”
"These numbers also imply that the cost of production of
gas, on a post tax basis, works out to about USD three per mmBtu, and including the cost of capital, the cost would be even higher," Prasad said.
Bureau Report
First Published: Friday, August 28, 2009, 18:18