Ambani gas sharing row: Centre walks tightrope in SC

New Delhi: The Centre tried a difficult balancing act in the Supreme Court on Tuesday with its fresh application attempting to protect NTPC's interests while at the same time steering clear of rubbishing the family agreement, or MoU, on sharing KG basin gas between the warring Ambani brothers' RIL and RNRL.      The government's cautiously worded nine-page application said its approval of a sale price of $4.2 per unit (mmbtu) for RIL's KG basin gas could be applicable to any other party but not to NTPC as the latter was a public sector unit and had arrived at a price for RIL's gas through international competitive bidding.      It said the Bombay high court, by giving credence to the family deal that allowed the sale of gas to Anil Ambani's RNRL from Mukesh's RIL at $2.34 per unit and fixing the volume to be supplied at 28 mmscmd, had virtually ousted the Centre, which alone had the jurisdiction to decide the matter. "The HC hasstepped into the shoes of the government in matters of allocation of gas to the extent of 28 mmscmd to RNRL,'' it said.  Fire-Fighting  Centre, in a fresh application before SC, steers clear of rubbishing MoU between Ambani brothers on sharing KG basin gas  Says the price of $4.2/unit (mmbtu) for KG gas can be applicable to any party, but not NTPC, as it is a PSU  Says Bombay HC, by giving credence to the Ambani deal, had virtually stepped into the government's shoes as regards gas allocation  Claims govt has sovereign right to determine the prices 'RIL can't ink deals to sell gas sans govt nod'  New Delhi: The Centre, in its new application in the Supreme Court on the KG basin gas dispute between Mukesh and Anil Ambani, said the Bombay high court's judgment had upheld the Ambanis' private arrangement (MoU) and interpreted the provisions of the production sharing contract (PSC) and the policies of the government in such a manner as though they would not have any impact or effect on the private agreement.      "The judgment ignores the fact that the subject matter of the very price agreement at the rate of $2.34 per unit between RIL and RNRL has been rejected as not being 'arm's length price'. RIL has no right to unilaterally enter into agreements to sell gas without the government's approval under the provisions of the PSC,'' it said in the affidavit finalised by additional solicitor general Mohan Parasaran.      Clarifying that it was neither concerned with any other aspect of the family agreement or MoU between RIL and RNRL nor was seeking the setting aside of any of them, the Centre said it had approved a price of $4.2 per unit in respect of the D-6 block without prejudice to the NTPC's rights in the pending suit filed by it against RIL in the Bombay HC.      Quoting extensively from the EGoM meeting of August 28, 2007, the Centre said the then law minister (H R Bhardwaj) had clarified in the meeting that "two cases between RIL vs NTPC and RIL vs RNRL were separate contracts between the supplier and different companies''.      Stating that the "government has the sovereign right under PSC to determine the prices'', it added, "The rights and obligations between RIL and NTPC cannot be regarded as similar in status to the 'private arrangement' between RIL and RNRL because of NTPC's status as public utility and the process involved, that is, international competitive bidding.''