Nothing to do with Ambanis' dispute; will protect gas: Government

Asserting that it had no role in the Ambani family dispute, the government today declared in parliament that it will do everything to protect its legal right to regulate usage of gas.
     
"We have nothing to do with the private dispute of two industries or industrialists. However, we have everything to do with protecting the interests of the government and public interest, this is our constitutional and legal obligation," oil minister Murli Deora said in Lok Sabha.
    
Making a statement in response to allegations by Samajwadi Party (SP) leader Mulayam Singh Yadav that Uttar Pradesh was being discriminated against, Deora said Anil Ambani group's proposed Dadri power plant would be considered for gas along with other such projects.
    
Anil Ambani group firm RNRL's Dadri power plant "is neither installed nor functional," he said, adding that it would treated "on the same footing as other similar plants."
    
Not satisfied, SP members rushed to the well of the house creating a din, but speaker Meira Kumar continued with the day's business that saw introduction of a few bills before the house was adjourned for lunch.
    
Deora said that the MoU between Mukesh and Anil Ambani not only stipulated sharing of gas between companies run by them from KG-D6 fields, but also from other fields that RIL may explore and operate in the future, thus necessitating government's petition in Supreme Court challenging the Bombay High Court decision.

"The final order of the Bombay High Court has implications on government's rights to formulate and implement the gas utilisation policy under the Production Sharing Contract (PSC)," Deora said, explaining why the government had to move Supreme Court against the High Court order.
    
"Notwithstanding government policies and provisions of the PSC, the order observes that the provision of (Ambani) MoUare binding on the parties," he said.
    
The Ambani MoU, he said, provides for 12 mmscmd for NTPC, 28 mmscmd to RNRL and the remaining gas from KG-D6 and also
other fields to be split between RIL-RNRL in 60:40 ratio.
    
"Under the circumstances, it was necessary to file an SLP in the Supreme Court and accordingly action has been taken,"
he said, refusing to give details as the matter was subjudice.
    
Rejecting contentions that the government did not argue its case before the Bombay High Court that initially heard the
gas dispute between the two brothers, he said it was on the government's plea that the court lifted stay on gas sales.
    
"Government placed before the court its submissions indicating its right under the PSC, including inter-alia the gas utilisation policy," he said.
    
Citing the PSC, he said gas to be produced from KG-D6 fields is to be utilised in accordance with the Gas Utilisation Policy to be approved by the government.
    
"We will make all endeavours to protect government's legal rights to regulate the utilisation of gas and its allocation," Deora said.
    
An empowered Group of Ministers (eGoM) allocated the first 15 mmscmd of gas from KG-D6 to urea plants that has helped save Rs 3,000 crore in fertiliser subsidy. Further, 18 mmscmd was allocated to power plants that helped produce 4,000 MW of additional power.
    
"An additional 25 mmscmd needs to be supplied to existing power plants to enable optimum operations and to power plants to be commissioned in 2009-10, which would lead to additional generation of over 5,000 MW," Deora said.
    
On Mulayam Singh Yadav's allegation, he said Uttar Pradesh was not being discriminated and NTPC's Dadri plant had been allocated 0.45 mmscmd gas from KG-D6 fields. Out of the 15 existing gas-based urea plants that have been given gas, five of them are in that state.
    
"As far as RNRL's Dadri power plant is concerned, the case was considered by the eGoM. This plant is neither installed nor functional," he said.
    
Deora said RIL's KG-D6 fields started gas production on April one and are currently producing around 31 mmscmd. "Within a year, it is expected to go up to 80 mmscmd."
    
"The first priority (of the additional production) will be to supply gas to existing plants, which are not operating at all or are operating sub-optimally because of non-availability of gas," he added.