The Seesaw Saga
- Going against SC verdict on K-G basin case, RIL seeks say in gas pricing
- PetroMin declines RIL’s demand for gas price at import parity rates
- Free pricing not the norm, will impact consumer industries, end products
- RIL move on CBM gas price also seen as a “ruse” to revise K-G basin gas price
- Government asks RIL to withdraw its notice, but will seek arbitration soon.
The high-octane battle between the Union petroleum ministry and Reliance Industries over the D-6 block in the Krishna-Godavari basin has acquired a fresh dimension. Bolstered by an upcoming formal government approval of its 30 per cent stake sale in 21 exploration blocks to BP for $7.2 billion, RIL is upping the ante by asking the government to free gas pricing (fixed at $4.2 per million btus for the D-6 block, pending a revision due in 2014). What the company is seeking is import parity...