Reliance industries pitches for market-driven price for natural gas
"There is no finding or observation in the Judgement of the Supreme Court which entitles the Government to arbitrarily or unilaterally fix the price of gas and require the contractor to sell gas at a price which is not the market price of natural gas in the country," it said.
The Apex Court, the May 2010 judgement in RIL's gas dispute with Reliance Natural Resources Ltd, "requires the Government to revise the price if the price at which the
contractor sells the gas under a formula is not the market price of gas in the country."
"We trust that the committee will make recommendations... which stipulates that all gas produced by the contractor will be sold at an arm's length market price," RIL wrote.
The company wanted the existing arrangement of profit sharing between explorers and the government to continue.
The six-member panel headed by the Prime Minister's Economic Advisory Council chairman may be veering around to the idea of changing the present system where firms like RIL are allowed to recover all their investment first before sharing profit with the government, thereby giving incentive to keep raising spending to delay government profit.
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