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Government rules out takeover of Reliance gas distribution

Category :India Sub Category :National,Business
2009-08-06 00:00:00
   Views : 396

New Delhi, Aug 6 - Petroleum and Natural Gas Minister Murli Deora Thursday ruled out a state takover of the distribution of Krishna-Godavari (KG) gas, over which the Ambani brothers are locked in a bitter legal battle, and said the government will do 'everything' to protect its rights over gas allocation.

'We have nothing to do with a private dispute. However, we have everything to do to protect the government's legal rights on gas allocation,' Deora told the Rajya Sabha during a calling attention motion by Communist Party of India-Marxist (CPI-M) leader Tapan Kumar Sen.

He said the Mumbai High Court judgement of June 15 which stated that the agreement between Mukesh Ambani's Reliance Industries and his younger brother Anil Ambani's Reliance Natural Gas Resources (RNRL) stood 'has implications on the government's right to fix prices and we have filed a Special Leave Petition in this regard'.

'The old days of nationalisation are gone,' Deora said while responding to suggestions made by MPs for a state takeover of the gas distribution.

Reliance Industries started production of gas at the offshore block, off the coast of Andhra Pradesh, in April with 31 million units a day, which is slated to go up to as much as 80 million units within a year.

Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas from the fields to RNRL for 17 years at $2.




Author :Indo Asian News Service



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