RIL may be allowed to sell gas to third parties

Division Bench of the Bombay High Court said that it could modify the injunction that prevents Reliance Industries from selling gas to third parties. Mr Justice J.N. Patel, while hearing the arguments of Additional Solicitor-General, Mr Mohan Parasaran, said that the court could consider modifying the injunction after the Government, under an affidavit, clarifies the price at which gas from the Krishna-Godavari block would be sold to Government and its nominee companies like NTPC. The Government is an intervener in the RIL-RNRL case and has sought to lift the injunction. The court sought to know from Mr Parasaran the price at which state-owned NTPC will be buying gas from RIL. It also wanted to know, what the Government’s stand was under the crucial ‘Valuation of Natural Gas’ provision of the Production Sharing Contract that exists between RIL and the Government. Mr Parasaran said NTPC has yet to approach the Government for approval of the price at which it wants to buy the gas. The Government will ensure a level playing field. The Government will file an affidavit on the “valuation of the natural gas” provision of the Production Sharing Contract on Tuesday.