 "Govt bent rules to favour RIL: CPI leader; Company says it's not true")
As the Public Interest Litigation filed by CPI MP Gurudas Dasgupta comes up for hearing in the Supreme Court tomorrow, Business Standard brings to you a snapshot of the arguments by both parties so far.
Dasgupta has alleged that no due diligence was done by the government while increasing the price of natural gas.
The apex court sought response from BP Exploration Limited, NIKO Resources Ltd and Ministry for Petroleum & Natural Gas on the PIL filed.
On gas pricing
Gurudas Dasgupta
Government should withdraw decision to double natural gas price to $ 8.4 per mmBtu.
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Reliance Industries
Gas should be priced on arms lenght basis.
Gas should be priced on arms lenght basis.
RIL hoarding gas
Gurudas Dasgupta
RIL reduced production deliberately to get a good price next year
Reliance Industries
RIL currently producing from D1, D3 fields which saw large pressure drop and water ingress in the wells drilled
Windfall for RIL
Gurudas Dasgupta
Ill-disguised attempt to give huge profits to RIL
Reliance Industries
Wrong. Public sector companies produce 70% of nation’s gas while KG D6 block's production is mere 15%
RIL should deliver the shortfall in production at $4.2 mmBtu
Gurudas Dasgupta
Gurudas Dasgupta
The shortfall in gas supplies should be made good at the old rate of $4.2 mmBtu RIL should be fined for non-achievement of production target
Reliance Industries
There is no commitment to supply a fixed quantity of gas at an agreed price
There is no commitment to supply a fixed quantity of gas at an agreed price
Higher subsidies due to higher gas prices
Gurudas Dasgupta
Increased subsidy burden for fertiliser and power to be Rs 2.2 lakh crore during 5-year period
Reliance Industries
By 2015-16 India would need 169 mmscmd of gas. Current gas production is 55 mmscmd. This will result in more gas imports and higher subsidies
Price increase to impact power and fertiliser sector
Gurudas Dasgupta
Increase in cost of power by Rs 2 per unit and fertiliser by Rs6,000 per tonne
Reliance Industries
At new gas price, these sectors would get gas at competitive price compared to imports of use of alternate fuels like LNG and Naphtha