RNRL ABOVE 92 FOR ATARGET OF 105

Reliance Natural Resources Wants to Dismiss Government Stand On Gas Dispute

The Reliance ADAG group has requested Supreme Court to ignore the government’s stand which doubts the legality of the contract it has with Mukesh Ambani’s reliance Industries for the natural gas supplies from the Krishna-Godavari basin.

According to the petition filed by Reliance Natural Resources it cannot agree to government’s view that the gas available from the KGF basin cannot be sold without approval from the government.

"The production-sharing contract gives marketing freedom to the contractor. This is established from the plain reading of the production-sharing contract and the answers given by the government in parliament," said the petition.

The company also states that Reliance Natural Resources and Reliance Industries contract was a part of the restructuring effort between the two brothers, in which government does not have any role.

"In this reorganization of the business of Reliance Industries, the government has no locus to intervene," the petition said, staking claim to 28 million units of gas a day at $2.34 per unit for 17 years, based on its contract.

"The gas supply arrangement provided by the memorandum of understanding is like any other commercial gas supply arrangement made by a contractor for sale of gas that would come to its share as per the provisions of production-sharing contract."

Reliance Natural Resources also mentioned that government should have never said that it came to know about the contract it shared with Reliance Industries only from the Bombay High Court order, when it had the prior information of the deal before.
 source:moneycontrol