New Delhi, July 22: Amid a legal battle on gas supply between Mukesh and Anil Ambani groups, Prime Minister’s office has sought comments from Petroleum Ministry on allegations by the younger Ambani that it was siding with the other side.
In a communication sent earlier this week, PMO has asked the Petroleum Ministry for comments on issues raised by Anil in a letter, wherein the industrialist urged Prime Minister Manmohan Singh to direct the ministry to “cease from overtly and covertly attempting to intervene in our commercial dispute with RIL”.
Anil’s letter was first reported on Monday, two days after the Petroleum Ministry moved the Supreme Court seeking annulment of a Memorandum of Understanding between Mukesh-led RIL and Anil group firm RNRL.
“We have recently seen a spate of unfortunate public utterances with unusual frequency, by various functionaries in the Petroleum Ministry… 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,” Anil’s letter said.
The Petroleum Ministry, in its petition, had also sought a stay on the June 15 Bombay High Court decision that directed RIL to supply gas to RNRL at USD 2.34 per mmBtu, a price that is 44 per cent less than the government-prescribed rate.
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.
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.
–Agencies–