Reliance Industries, the operator of the KG-D6 field off the nation’s east coast, told the court it is bound by the government’s policy on the sale of gas. The government sets the price of gas and selects the buyers.
Reliance Industries said RNRL isn’t entitled to buy natural gas from the nation’s biggest field as agreed when the Ambani business was split unless the government approves the sale.
The government, which has said the gas is national property, told the Supreme Court in a petition that its production-sharing contract with Reliance must prevail over private arrangements the company has for sale of the gas from the field.
The top court will decide whether to admit the government’s petition, along with those filed by fertilizer and power companies that were named priority customers for the KG-D6 gas.
There has to be some process to reach a suitable arrangement, the panel of judges headed by Chief Justice K.G. Balakrishnan said today, suggesting arbitration, third-party intervention, mutual settlement and legal resolution as options.
Labels: Reliance Industries, RIL, RNRL