Power Minister Sushilkumar Shinde today said the Supreme Court upholding the government's right to approve price and utilisation of gas was a "fair decision" and it had no bearing on the gas supply dispute between NTPC and Reliance Industries.
"It has nothing to do with RIL-NTPC case," he said shortly after a three-judge bench of the apex court ruled that private family agreements cannot over-ride the government's right under Production Sharing Contract (PSC) to approve price and fix users of gas.
Supreme Court had ruled that Anil Ambani Group's Reliance Natural Resources Ltd cannot claim gas at concessional rate of 2.34 per million British thermal unit from RIL. The rate RNRL is claiming is the same that RIL had bid in a 2004 NTPC tender to supply 12 million standard cubic meters per day of gas to the state utility.
The contract for supply could not be concluded over differences on terms and NTPC has dragged RIL to Bombay High Court seeking performance of the contract. Shinde said today's judgement had nothing to do with NTPC's dispute with RIL.
"It has nothing to do with my case of NTPC against RIL. No reference has been made on the dispute in the court judgement."
He declined to comment on the supply dispute between RIL and RNRL, saying it was a matter being two brothers. When asked about the Supreme Court upholding government's right under PSC, Shinde said, "It is a fare decision."
Shinde said he was "part and parcel" of the ministerial panels that first approved $4.20 per mmBtu price of RIL's KG-D6 gas, fixed priority and users of the fuel and then decided to appeal against the Bombay High Court decision.