No favour from Govt in KG basin: RIL to SC

Tags: News
Reliance Industries Ltd (RIL) today asserted in the Supreme Court that it did not receive any favour from the government in the contract for exploration of oil and gas from Krishna-Godavari basin.

Senior advocate Harish Salve, appearing for RIL, denied allegations of favour and collusion and said the company was in dispute with the government on several issues.

"Far from being a favour to the contractor (RIL), the government has denied contractor its contractual rights under the PSC (production sharing contract)," he submitted before a three-bench headed by Justice B S Chauhan.

Submitting that economic decisions by the government should not be judicially reviewed, the senior advocate said the company itself has some reservation about Rangarajan Committee recommendations which devised the formula for gas pricing.

The RIL submitted that the PSC along with other documents shows that KG basin's gas price is not to be based on costs and is based upon a market determined price.

While arguing the matter for RIL, Salve explained the nitty gritty of the gas exploration with a scale model of KG Basin -D6 gas field.

He was also critical of the CAG report on KG-D6 basin which according to him was based on incomplete information.

The apex court had on March 11 commenced the hearing on the PILs filed by senior CPI MP Gurudas Dasgupta and NGO, Common Cause, which have sought imposition of penalty on private parties for failure to adhere to commitments.

The petitioners have also sought a direction for a thorough audit by CAG of the working of the production-sharing contract (PSC) governing KG block, gold plating by RIL, "underproduction" by RIL and all related issues.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Child abuse needs to be tackled with the seriousness it deserves

    The Bangalore rape case has again brought into focus an issue we Indians forever shy away from facing up to — child sexual abuse.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: THE BASE RATE BIAS

Base rate fallacy, also called base rate neglect or base ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture