Gas row: NTPC arrangement cannot be equated with RIL and RNRL

New Delhi, Dec 2 (PTI) The high-voltage legal battle
on the gas row between the Indian industrialists Ambani
brothers Wednesday saw the Government telling the Supreme
Court of India that the arrangement for supply and pricing of
gas for public sector National Thermal Power Corporation
(NTPC) cannot be equated with any agreement between Reliance
Industries Limited (RIL) and Reliance Natural Resources
Limited (RNRL).

The Government stand was in response to the Anil
Ambani-led RNRL's contention that it was entitled to receive
the gas at USD 2.34 per unit from Mukesh Ambani group RIL
which had entered into an arrangement for supplying gas to
NTPC at that rate.
"The rights and obligation of NTPC and RIL cannot be
regarded as similar in status to the private arrangement as in
the case of RIL and RNRL because NTPC is not only a PSU but
the process involved for price determination in the case of
NTPC gas was by international competitive bidding," the
government said in the affidavit.
However, RNRL said in the present affidavit government
was compromising the interest of NTPC and taking a partisan
view.
When the affidavit was placed before the Bench headed
by Chief Justice K G Balakrishnan, RNRL's counsel Mukul
Rohatgi said the affidavit did not speak anything about the
price of gas at USD 2.34 per unit
He said Solicitor General Gopal Subramanium had made a
categorical statement that the gas would be supplied at USD
2.34 per unit to the NTPC as a government nominee.
However, the present affidavit did not say so, he said
adding that "this compromises the interest of the NTPC".
Refuting the contention, Subramanium said "we will
protect the interest of the NTPC. The decision will be taken
when the need arises". PTI IB
MYR


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