Govt takes a U-turn, claims it was not against Ambani MoU

Even though the Supreme Court has deferred hearing on the gas war between Mukesh Ambani-led Reliance Industries Ltd (RIL) and Anil Ambani?s Reliance Natural Resources Ltd (RNRL) till October, the Centre on Tuesday filed an amended petition in the apex court to clarify its stand as that of the sovereign owner of the natural gas.

Taking a significant turn from its earlier stand of declaring the Ambani family settlement (MoU) as ?null and void?, the government informed the Court that it was not seeking to set aside the Ambani family arrangement as prayed in the earlier petition. However, it wants the government?s contract with RIL to be given supremacy over the private family arrangement between Ambani brothers.

Taking a neutral stand, the government said, ?It (government) is in no way concerned with the private dispute between RIL and RNRL or between the Ambani brothers, but is only concerned with its rights as owner and regulator of natural gas.?

It also stressed that it has the sovereign right under the PSC (production sharing contract) to determine the prices of natural gas. The government further clarified that its policies on gas pricing were without prejudice to NTPC?s case against RIL as NTPC is a public sector undertaking. This step by the government is likely to save NTPC from potential losses of upto Rs 30,000 crore.

The Centre said, ??It has been the unequivocal stand of the government that the approval of the price of sale of gas at $4.2 per mmbu in respect of K-G D6 was without prejudice to the rights of NTPC in the pending suit filed by it against RIL before the Bombay High Court.??

Welcoming the amendments made by the government in its petition, RNRL said it is grateful to the government for taking a neutral stand and proposing these amendments.

??The rights and obligations between RIL and NTPC cannot be regarded as similar in status to the private arrangement between RIL and RNRL, because of NTPC?s status as a public utility and the process involved (international competitive bidding),?? the Centre said.

In its July 18 petition, the government had prayed that the MoU should be declared ?null and void? as it would mean that all the gas from the KG basin would be owned and utilised by RIL and RNRL. The Centre had claimed its ownership over gas from K-G D6 fields and it had hit at the RIL and RNRL for ??surreptitiously?? appropriating national resources, treating it as personal and family property.

The application was filed by the government in accordance with the decision taken by a group of ministers (GoM), headed by finance minister Pranab Mukherjee, in the face of bitter public battle on gas issue wherein Anil Ambani group is seeking fuel from RIL at the same price as one sought by NTPC.

The GoM had stepped in after the recent advertisement campaign launched by Anil Ambani group.