SC issues notice to Centre, Reliance on gas price hike
31 July 2013 5:07 AM IST
The Supreme Court on Monday agreed to examine the matter of the government’s decision to raise the price of natural gas and issued notice to billionaire Mukesh Ambani-led Reliance Industries Ltd over the issue.
A bench headed by Chief Justice P Sathasivam also issued notices to the central government and petroleum minister Veerappa Moily on the issue on a PIL filed by CPI MP Gurudas Daspupta, who alleged that the government did not carry out the due diligence procedure while increasing the price. The court said the issue raised by the senior MP needs examination and the petition cannot be rejected at the initial stage. The apex court also sought response from BP Exploration (Alpha) Limited, NIKO Resources Ltd and Ministry for Petroleum & Natural Gas.
Dasgupta pleaded for a slew of directions including review of the central government’s decision to increase the price of natural gas from USD 4.2 per million British thermal unit (mbtu) to USD 8.4 mbtu from 1 April, 2014. He also sought direction to RIL and NIKO to relinquish those areas of the KG basin forthwith as are recommended by CAG in its report and the central government to take possession of the area.
The petition alleged that Moily was stalling arbitration proceedings against the RIL to recover a penalty of $1 billion from the firm for allegedly violating contractual obligations in gas extraction in the Krishna-Godavari basin.
The CPI MP’s counsel argued the decision to raise price needs to be reviewed as the petroleum minister has over ruled the opinion of senior officers of the ministry and his predecessor. Dasgupta said he had to file the PIL as the prime minister failed to take any action on his complaint on the issue. The court asked the parties to file their response on the matter within four weeks and posted the matter to 6 September.
A bench headed by Chief Justice P Sathasivam also issued notices to the central government and petroleum minister Veerappa Moily on the issue on a PIL filed by CPI MP Gurudas Daspupta, who alleged that the government did not carry out the due diligence procedure while increasing the price. The court said the issue raised by the senior MP needs examination and the petition cannot be rejected at the initial stage. The apex court also sought response from BP Exploration (Alpha) Limited, NIKO Resources Ltd and Ministry for Petroleum & Natural Gas.
Dasgupta pleaded for a slew of directions including review of the central government’s decision to increase the price of natural gas from USD 4.2 per million British thermal unit (mbtu) to USD 8.4 mbtu from 1 April, 2014. He also sought direction to RIL and NIKO to relinquish those areas of the KG basin forthwith as are recommended by CAG in its report and the central government to take possession of the area.
The petition alleged that Moily was stalling arbitration proceedings against the RIL to recover a penalty of $1 billion from the firm for allegedly violating contractual obligations in gas extraction in the Krishna-Godavari basin.
The CPI MP’s counsel argued the decision to raise price needs to be reviewed as the petroleum minister has over ruled the opinion of senior officers of the ministry and his predecessor. Dasgupta said he had to file the PIL as the prime minister failed to take any action on his complaint on the issue. The court asked the parties to file their response on the matter within four weeks and posted the matter to 6 September.
Next Story
