'Govt, RIL not at loss if gas supplied at $2.34'

Posted By: Staff
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New Delhi, Dec 8: The RNRL has said before the Supreme Court that it has an "unqualified" right to get gas at $2.34 per unit from RIL which will along with the Government not suffer any loss at this rate.

"There would be no impact on the Government at all and it would suffer no loss whatsoever. RIL would also make a profit of Rs 30,000 crore at this rate," RNRL said on Tuesday, Dec 8, in an affidavit before a Bench headed by Chief Justice K G Balakrishnan.

"In case the Government values the gas at 4.20 per mmBtu and RIL sells gas to RNRL at the price of 2.34 per mmBtu, the Government would still obtain its full share of the profit on gas," it said.

"RNRL submits that it has an unqualified right to get 28 MMSCMD for 17 years at the price of USD 2.34 mmBtu," the company argued.

It pleaded that RIL is trying to inflate its profit by saying that the gas can only be sold at USD 4.20 per unit.

Earlier, on Dec 2, the Government in its affidavit had argued that a private agreement between RIL and RNRL could not be equated with that of any arrangement for NTPC.

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