Mukesh Ambani-led RIL has told the Supreme Court that it cannot sell natural gas to Anil Ambani group firm RNRL at a price 44 per cent lower than the government-approved rate and said that it would incur huge cash losses if it is forced to do so.
An RIL spokesperson said that the company has filed its reply to the government’s petition on the gas dispute.
In the petition, the company accepted the Oil Ministry’s contention that natural gas from the KG-D6 fields can only be sold to users identified by the government.
The company said gas cannot be sold to different consumers at different rates and there cannot be different prices for sale to consumers and for valuation purposes.
RIL expressed its inability to supply gas at USD 2.34 per mmBtu (a rate 44 per cent lower than government fixed price of USD 4.20 per mmBtu) to Anil Ambani Group firm RNRL, which had taken the Mukesh Ambani firm to Supreme Court seeking gas for group power plants in accordance with a 2005 family agreement.
It said the commitment under the 2005 family MoU, to supply 28 million standard cubic meters per day to RNRL, was subject to government approval.
On the Bombay High Court directing RIL to meet the commitment made in the 2005, RIL said: “The order of the Division Bench (of Bombay High Court) has put RIL in a position of having to breach the Production Sharing Contract and violate the government’s policies.”