RNRL alleges nexus between RIL, DGH chief; seeks SC intervention
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RNRL alleges nexus between RIL, DGH chief; seeks SC intervention

Last Updated: Tuesday, October 06, 2009, 19:07
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RNRL alleges nexus between RIL, DGH chief; seeks SC intervention New Delhi: Anil Ambani group firm RNRL on Tuesday alleged that upstream oil and gas regulator V K Sibal was acting at the behest of Reliance Industries in exchange for undue favours and sought intervention of the Supreme Court.

Citing news reports and the statements by the Director General of Hydrocarbons, RNRL said: "It appears that V K Sibal... in exchange of undue favours has been doing favours to/accommodating RIL including by way of approving capital expenditure of over Rs 40,000 crore.

"It is further submitted that... Sibal... made a statement that the estimated cost per mmBtu of the gas produced by RIL at the Krishna-Godavari D6 basin is USD 1.28 per mmBtu."

RNRL, which is fighting RIL over supply of gas, filed a petition before the apex court contending that the Director General of Hydrocarbons as also the Oil Ministry had wrongly approved the increase in capital expenditure.

The Anil Ambani group firm prayed that the apex court should pass orders that it may deem fit.

Sibal has separately denied taking favours from RIL and maintained that "DGH does not approve any expenditure. We only approve development plan for a field with a view to look at its economic viability."

Bureau Report

First Published: Tuesday, October 06, 2009, 19:07

Comments

Ashok Misra - Aberdeen ,UK
I may be able to to throw some light on the nature of the serious alegations against Mr V K Sibal , DGH.These could be:1.] Award of contracts by RIL to Aker solutions Norway(USD 0.4 Billion) and J Mcdermott(USD 0.44Billion) in May 06 and Sep 06 respectively without competitive bidding even before the approval of the revised development plan for D1 and D3 gas fields that was accorded by the management committe on 13 Dec 2006. Tenders are normally called after the field development plan is approved!!2.] Award of the contarct by RIL to Swiss Group ``Allseas``(USD 1.2 Billion) in Sep06 again before the approval of the field development plan on 13 Dec 06.3.] Award of letter of intent by RIL to Aker Solutions Norway(USD 1.5 Billion)without competitive bidding for development of the MAD6 oilfield even before MAD6 was declared commercial by DGH on 01 Feb 07 and Field development plan approved on 24 April 2007
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