Posts
![[Most Recent Exchange Rate from www.kitco.com]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_ttek388dhPbk7VwpOcEvD_s-ArMRpFasKCvAV1TMNt-j6CUK-MszMlp7Q4zS1I4RmF_6C98lkVbsQ1IwcbjHYpKLzYQAAJnlYdda9PdpbdOOqUxehOSf4=s0-d)
Says RIL Can't Commit National Property Without Its Nod; RNRL Says HC Ruling Overrules Executive Decision
THE government is contemplating penal action against Reliance Industries (RIL) for committing 28 million standard cubic meters of gas per day (mmscmd) from its KG basin block to Reliance Natural Resources (RNRL) at a price of $2.34 per million British thermal units (mmBtu) as part of the Ambani family settlement without the permission of the government.
"RIL is merely a contractor for the KG basin block (D-6) and not the owner. Two promoters (read Mukesh Ambani and Anil Ambani) can't divide a national property between themselves without the government's approval. The matter is being examined," a senior official in the know told ET, requesting anonymity.
The government's intention of penalising RIL was first broken by ET NOW, this newspaper's business channel, on Tuesday evening.
The proposed penalty could come as a blessing in rather thin disguise for RIL, which would like to negate any contractual obligation on its part to supply gas to RNRL at a price of $2.34 per mmBtu, significantly lower than the government-set price of $4.20 per mmBtu at which RIL is selling gas to other users.
An RNRL executive claimed that such a move against RIL would in fact help the company in its dispute with RNRL. According to this person, the government had approved the proposal to sell gas to RNRL at the lower price as "part of its approval of the scheme of demerger."
When asked for comments, a senior RNRL said: "These aspects (price, term and quantity) are adequately and clearly covered in the judgement of the Bombay High Court." The high court ruling clearly overrides any executive order. The only option for RIL is to approach the Supreme Court, if it disagrees with the order.
"RIL is merely a contractor for the KG basin block (D-6) and not the owner. Two promoters (read Mukesh Ambani and Anil Ambani) can't divide a national property between themselves without the government's approval. The matter is being examined," a senior official in the know told ET, requesting anonymity.
The government's intention of penalising RIL was first broken by ET NOW, this newspaper's business channel, on Tuesday evening.
The proposed penalty could come as a blessing in rather thin disguise for RIL, which would like to negate any contractual obligation on its part to supply gas to RNRL at a price of $2.34 per mmBtu, significantly lower than the government-set price of $4.20 per mmBtu at which RIL is selling gas to other users.
An RNRL executive claimed that such a move against RIL would in fact help the company in its dispute with RNRL. According to this person, the government had approved the proposal to sell gas to RNRL at the lower price as "part of its approval of the scheme of demerger."
When asked for comments, a senior RNRL said: "These aspects (price, term and quantity) are adequately and clearly covered in the judgement of the Bombay High Court." The high court ruling clearly overrides any executive order. The only option for RIL is to approach the Supreme Court, if it disagrees with the order.
FREE SMS ALERTS ON
India Stock Market
Cricket Live Score
Job Openings
Entrance Exams
Disaster Awareness
DisasterAwareness | Health | Commodities
0 comments:
Post a Comment