The ministry of petroleum and natural gas has asked the law ministry to depute additional solicitor-general Gopal Subramanium to represent the Centre in the high courts of Delhi and Gujarat as also the Supreme Court in the ongoing case with gas-based power companies over the gas pooling price policy for re-gasified LNG (R-LNG). The case is coming up for hearing in the Gujarat High Court on September 10.
Companies like Essar and Gujarat State Petro-Chemicals Ltd (GSPCL), who were purchasing the low priced R-LNG under the earlier term contracts, filed petition in the high courts of Delhi and Gujarat against the government?s order which said the price of R-LNG procured under the term contracts should be non-discriminatory and that a uniform pooled price should be charged from all existing and new consumers. An order to this effect was issued by the petroleum ministry in March this year.
The Gujarat High Court granted a stay against the government order on July 31 which was later vacated following petitions by the petroleum ministry and oil PSUs. However, the Supreme Court also directed the chief justice of the Gujarat High Court to constitute a division bench for deciding on the grant of interim stay.
Now, considering the importance of the case for the government, sources said, both the cabinet secretary and the petroleum secretary had asked the department of legal affairs to ask Gopal Subramanium to represent GOI in this case in all courts of law. One of the major beneficiaries of the pool pricing policy is the Ratnagiri Gas and Power Pvt Ltd (RGPPL), formely the Dabhol power company. The project is completely dependant on supply of R-LNG.