HC allows Reliance to sell KG basin gas at $4.20
Interim order not to affect rights of RNRL, NTPC.
--------------------------------------------------------------------------------
Gas price
A gas price of $4.2 per MMBTU translates roughly into a crude price equivalent
of $ 28 to $30 a barrel, according to oil industry experts. Crude is now
hovering around $ 41 a barrel. The Centre fixed the gas price from Reliance's
wells when crude was around $147 a barrel.
--------------------------------------------------------------------------------
Rahul Wadke
Mumbai, Jan. 30 The Bombay High Court on Friday allowed the Mukesh
Ambani-controlled Reliance Industries to sell natural gas from its KG basin
block at the Government approved price of $ 4.20/mmbtu, till the final judgment
on the on-going case is pronounced.
The sale of gas by RIL was banned by the court through an interim injunction
obtained by Reliance Natural Resources Ltd in 2007. RNRL's contention was that
it has the first right to the gas from the KG basin, under the Ambani family
agreement.
The Division Bench headed by Mr Justice J.N.Patel and Mr Justice K.K. Tated,
which has been hearing the case, on Friday passed an interim order vacating the
ban on RIL selling gas to parties other than Anil Ambani-controlled RNRL.
The Division Bench also said that the interim order would operate only till the
final judgment is given and it will not affect the rights of RIL and RNRL.
Rights of NTPC, which is fighting another suit with RIL, will also remain
unaffected.
The Additional Solicitor General of India, Mr Mohan Parasaran, who is
representing the Union Government in the case, told presspersons that this is
an interim order.
The court has allowed RIL to sell gas at the rate determined by the Government.
"We had requested the court to lift the injunction so that gas could be sold by
the end of February at the rate of $4.20/mmbtu.
The gas would be sold according to the gas utilisation policy of the Government.
Priority sectors such as power and fertiliser plants will get preference.
The gas would be given to PSU as well as private sector plants, he said.
Public interest
Mr Parasaran said the lifting of the ban on sale of gas is in public interest.
Final judgment in the case is expected by mid-March.
Counsel for RIL, Mr Harish Salve, while arguing the case, said that any gas
supply contract which RIL will sign in the interim period will have a rider
that the other party will have to abide by the final judgment given by the
court.
Today was the last day of the arguments in the case which had commenced in 2005.
http://www.thehindubusinessline.com/2009/01/31/stories/2009013151980100.htm
ekamber
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