Mukesh wants Govt as party in Gas dispute

Mukesh Ambani’s Reliance Industries Limited (RIL) asserted before the Supreme Court that the Union Government as a public interest watchdog, cannot be kept out of the natural gas dispute since gas is a national asset and its benefits must reach the aam aadmi.



Senior counsel Harish Salve, appearing for Mukesh Ambani, contended that Anil Anbani’s Reliance Natural Resources Ltd (RNRL) was not entitled to supply of natural gas without setting up power plants.



He also stated before a bench comprising Chief Justice K G Balakrishnan and Justices B Sudharshan Reddy and P Sathasivam that the RNRL has not set up a power plant at Dadri till date and wanted to make huge profits by selling the gas.



According to Mr Salve the benefit of lower rate of natural gas must be passed on to the common electricity consumer. However, the RNRL stand is ‘Take this natural resource and give it to me and I will sell it to somebody else and make a profit’.



He also pleaded that according to the family MOU, the RNRL was assured of gas supply on setting up of the power plant. 



Counsel for the RIL also submitted that only the government as a Regulator can act after taking into consideration the larger public interest to ensure supply of electricity to the common consumer at a reasonable price. He also said the benefit of availability of gas at cheaper rates must go to the electricity consumer and not to the coffers of RNRL. 



Anil Ambani wants natural gas from Krishna Godavari base at the rate of 2.34 dollar per unit(Rs 112 per unit) while Mukesh Ambani is not prepared to supply gas to the RNRL below the rate of 4.2 dollar per unit, the rate fixed by Union Oil Ministry in December 2006. 



As per the family MOU dated June 18, 2005, arrived at between Ambani brothers in the presence of their mother Kokila Ben, the RIL is to supply gas to the Dadri power project of RNRL for 17 years at the rate of 2.34 dollar per unit. 



The arguments will continue.