HC judgment on KG gas row in four weeks

The Bombay High Court is likely to deliver its judgment within four weeks on the dispute between Anil Ambani-promoted Reliance Natural Resources Ltd (RNRL) and Mukesh Ambani's Reliance Industries Ltd (RIL) on the issue of gas allocation from the Krishna-Godavari basin.

RIL's block D6 is expected to start producing 80 million cubic metres per day (mcmd) of gas by mid-2008.

According to the last order of the court, this gas is locked up with RNRL, NTPC and for RIL's captive use and there is no scope for any third-party sale.

Both RIL and RNRL counsels concluded their arguments today and the Bench of Justice Anoop Mote directed both the parties to submit their written submissions within a week.

In the final hearing today, Harish Salve, the counsel for RIL, informed the court that the there was no evidence to back the submissions of RNRL and the court should dismiss the case.

According to the certified proven reserves (CPR) of gas from one field, it was difficult for RIL to commit gas for more than four years, he said.

Mukul Rohatgi, the counsel for RNRL, said RIL was obliged to supply gas to RNRL not only from one block but also from all other fields under exploration and development.

RIL's claims, based on the CPR, that it did not have adequate gas to supply 40 million cubic metres of gas per day was false and contradictory to the development plan, he added.

RIL's action to deny gas to RNRL frustrated the dream and vision of Dhirubhai Ambani and also disrespects Kokilaben Ambani, with whose blessings the demerger terms were finalised between the Ambani brothers, he said.