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Rediff.com  » Business » Ambani dispute: PMO seeks oil ministry's comments

Ambani dispute: PMO seeks oil ministry's comments

Source: PTI
Last updated on: July 22, 2009 19:34 IST
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The Prime Minister's office is believed to have asked for urgent comments from the petroleum ministry, which has been accused by industrialist Anil Ambani of siding with Mukesh-led RIL in an ongoing gas dispute.

Forwarding a letter written to Prime Minister Manmohan Singh, wherein the younger Ambani had sought a direction to the ministry of petroleum and natural gas 'to cease from overtly and covertly attempting to intervene in our commercial dispute with RIL," the PMO asked the ministry to examine the matter and submit their comments urgently.

Anil Ambani had said: "We have recently seen a spate of unfortunate public utterances with unusual frequency, by various functionaries in the petroleum ministry to the print and electronic media in a manner not witnessed in any other part of the government that too on a matter that is sub-judice in the Hon'ble Supreme Court."

Ambani's letter was first reported two days after the government filed a special leave petition challenging the Bombay high court decision, which directed RIL to supply gas to Anil group firm RNRL at $2.34 per mmBtu, and also seeking a direction to declare as 'null and void' an MoU between the two groups that provides for gas supply.

The Supreme Court will hear on September one admissibility of the petition, along with the cross petitions filed by the two brothers challenging the High Court decision. RIL said it cannot supply gas without the government's nod, while RNRL wants immediate implementation of the order.

Anil had virtually accused the Oil Ministry of doing a volte-face on gas pricing, saying its stand in the Supreme Court was in total variance with what it had said in Parliament.

Seeking protection from the 'partisan and biased approach' of the petroleum ministry, the younger Ambani had offered to meet Prime Minister Manmohan Singh to explain the issues.

In response to the cross-appeals filed by the brothers, the government first in its affidavit and then through a separate petition asserted its rights to fix gas prices and its utilisation.

However, the government had on many occasions stated in Parliament that it 'does not fix gas price' and that under the Production Sharing Contract "the operators have freedom to market the gas. . ." Anil noted.

Anil said on at least 13 occasions petroleum ministry has told Parliament that it has no role in fixing gas price.  He annexed copies of questions raised in Parliament, even once early this year, wherein petroleum minister or his deputies said: "As per the Production Sharing Contract... government does not fix gas price of gas. The role of the government is to approve the valuation. . ."

"You may kindly direct the ministry of petroleum and natural gas, directorate general of Hydrocarbons and other relevant ministries and departments to cease from 'overtly and covertly attempting to intervene in our commercial disputes", Anil asked the prime minister.

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