SC to test gas policy
The Supreme Court on Monday agreed to examine the government’s controversial decision to double the price of natural gas from the next financial year.
The apex court issued notices to the Centre and Reliance Indistries Ltd ( RIL) on the plea of CPI MP Gurudas Dasgupta which said that the decision was taken by the government with a view to allow windfall gains to the Mukesh Ambani- led RIL.
Saying that the issue raised by the senior MP needs examination, a bench headed by chief justice P. Sathasivam also issued notices to BP Exploration ( Alpha) Limited, NIKO Resources Ltd and the ministry for petroleum and natural gas led by Veerappa Moily. The court directed the parties to file their response within four weeks and posted the matter for further hearing to September 6.
The public interest litigation ( PIL) filed by Mr Dasgupta said that no due diligence was done by the government while increasing the price of natural gas. It said the decision to raise the price needs to be examined as Mr Moily has overruled the opinion of senior officers of the ministry and his predecessor.
The ministry for petroleum and natural gas has decided to increase the price of natural gas from $ 4.2 per million British thermal unit ( mbtu) to $ 8.4 mbtu from April 1, 2014.
Senior advocate Colin Gonsalves, appearing for Dasgupta, sought direction to RIL and NIKO to relinquish those areas of the KG basin as are recommended by the CAG and that the Centre take possession of the area. The petition alleged that Mr Moily was stalling arbitration proceedings against the RIL.