Ahmedabad, Sep 11 (UNI) The Maharashtra Government today submitted before the High Court here that the writ petition of the Gujarat State Petroleum Corporation (GSPC) should not be entertained as the issues raised relates to contractual obligation.
Making submission before the court, the Maharashtra State Electricity Board (MSEB) Executive Director R K Gupta said there is no violation of the constitution as the state had powers to revise prices of any commodity.
The court has also no powers to review the economic policy of the state, the MSEB contended.
Today was the second day of hearing as per the direction of the Supreme court, while vacating a stay granted by it on the notification of revising rates of R-LNG with effect from August one.
Advocate General Kamal Trivedi, representing Gujarat Electricity Corporation and GSPC, submitted that the company had entered into a five year contract to purchase R-LNG at fixed prices.
He said the Union government had not adopted the uniform policy while fixing the prices. It had calculated only the R-LNG sold by Petronet LNG Limited (PLL).
The decision was taken to benefit Dabhol Power plant, which will get Gas at lower prices than the prevailing rates, he said.
Mr Trivedi said the contract with PLL was vaild till December, 2008.
The GSPC had filed a petition in the High Court against the Central Government's decision to revise R-LNG for existing consumers on which the High Court had granted a stay last month.
After the stay, PSUs under the petroleum Ministry had approached the Supreme court, which had vacated the stay and directed the High Court to hear the matter afresh.