This will be without prejudice to the decision of the Court cases. Unquote.
Hence, the intention of the Government is very clear. We will allocate gas to Dadri plant subject to availability and that Dadri plant will be treated on the same footing as other similar plants placed under similar circumstances.
It is not correct to say that the government did not present its case before Hon'ble High Court of Bombay. The government had intervened in the RIL-RNRL dispute in the Hon'ble Bombay High Court. The government placed before the Hon'ble Court its submissions indicating its rights under the PSC, including inter alia the Gas Utilisation Policy. The government requested the Hon'ble Court to lift the injunction on creation of third party interests by RIL, which would enable RIL to supply gas to customers subject to Government policy.
The plea of the Government was accepted and, as a result of the interim order, gas production has started and gas supply is being made to priority sectors as per the Gas Utilization Policy approved by the EGoM. In the fertilizer sector, it is estimated that the supply of 15 mmscmd gas would result, on an annual basis, in saving of subsidy of Rs.3,000 crore.
I am happy to state that since the gas production started from 1st April 2009, about 4,000 MW of additional power is being generated as 18 mmscmd gas has been allotted to power sector. An additional about 25 mmscmd of gas needs to be supplied to the power sector to enable optimum operation of existing power plants and power plants to be commissioned in 2009-10, which would lead to additional generation of over 5,000 MW of power.
It needs to be mentioned that the present cost of assets, which are lying idle/ underutilized in the power sector due to non-availability of gas prior to the commencement of KG D-6 production, is around Rs.36,000 crore. Further, 3 mmscmd gas has been allotted to LPG sector, which would lead to an additional production of about one million tonne of LPG which is presently being imported in the country.
However, the final order dated 15.06.2009 of the Division Bench of the Hon'ble Bombay High Court has implications on the government's rights to formulate and implement the Gas Utilization policy under the production sharing contract. Notwithstanding Government policies and the provisions of the PSC, the order observes that the provisions of the MOU are binding on the parties.
The MOU, as per the judgment, provides that 12 mmscmd will be given to NTPC, 28 mmscmd will be given to RNRL and the remaining, at the option of ADAG, will be shared between RIL and RNRL in the ratio of 60:40. The MOU also stipulates that this share of gas will be applicable to gas not only from reserves of KG D-6 field, but also from other fields to be explored and operated by RIL, even consequent to future bidding by RIL. Under the circumstances, it was necessary to file an SLP in the Hon'ble Supreme Court and accordingly action has been taken. I would not like to dwell further on the subject, as the matter is sub judice.
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. We will make all endeavours to protect government's legal rights to regulate the utilization of gas and its allocation.'