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Mr Murli Deora

Our Bureau

New Delhi, Aug. 3 Spelling out the Government’s position on the allocation of gas from the Krishna-Godavari Basin’s D6 gas field, the Petroleum Minister, Mr Murli Deora, told Parliament on Monday that the Government has “nothing to do with the private dispute of two industries or industrialists.”

“However, we have everything to do with protecting the interests of the Government and public interest; this is our constitutional and legal obligation. We will make all endeavour to protect Government’s legal rights to regulate the utilisation of gas and its allocation,” he said.

There is a tussle between the two Ambani brothers — Mukesh and Anil — over pricing of gas supply, and allegations are being made on the role of the Petroleum Ministry in the dispute. Besides, the Samajwadi Party had raised questions on the supply of gas to the Dadri plant and discrimination against Uttar Pradesh on gas allocation.

Mr Deora said the Bombay High Court order in the RIL-RNRL case has implications for the Government’s right to formulate and implement the gas utilisation policy under the production sharing contract (PSC). “Notwithstanding Government policies and the provisions of the PSC, the order observes that the provisions of the MoU are binding on the parties,” he said.

The MoU provides that 12 mscmd of gas will be given to NTPC and 28 mscmd to RNRL, and the remaining, at the option of the Anil Dhirubhai Ambani Group (ADAG), will be shared between the Mukesh Ambani-led RIL and the Anil Ambani company RNRL in the ratio of 60:40.

The MoU also stipulates that this share will be applicable to gas not only from reserves of KG D6 field, but also from fields to be explored and operated by RIL.

The Minister said that, “Under the circumstances, it was necessary to file an SLP (special leave petition) in the Supreme Court and accordingly action has been taken. I would not like to dwell further on the subject, as the matter is sub-judice.”

On the contention that the Government did not present its case before the Bombay High Court, Mr Deora said, “It is not correct to say this… The Government had intervened in the RIL-RNRL dispute in the Bombay High Court. The Government placed before the High Court its submissions indicating its rights under the PSC, including inter alia the gas utilisation policy.

The Government requested the Court to lift the injunction on creation of third party interests by RIL, which would enable RIL to supply gas to customers, subject to Government policy.”

The plea was accepted and, as a result of the interim order, gas production has started and supply is being made to priority sectors according to the gas utilisation policy approved by the empowered Group of Ministers, Mr Deora said.

In his response to the Petroleum Minister’s statement, Mr Anil Ambani, Group Chairman and CEO of ADAG, said: “I am grateful for the Minister’s statement that the Government has nothing to do with the private dispute of two industrialists or individuals. This is in line with my request to the Prime Minister for neutrality of the Government in our commercial dispute with RIL.

“I hope this will become visible in the Petroleum Ministry’s stand in the case before the Supreme Court, and the Ministry will limit its role to interpretation of the PSC provisions, and protection of rights there under, as was the case before the Bombay High Court — and not extend to matters relating to third-party contracts between corporate and other entities….”

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