tag:blogger.com,1999:blog-4899103722933689680.post5185866565930662698..comments2024-02-27T11:21:48.313+05:30Comments on Beating The Dalal Street............: RNRL.....................Chairman.....Anil Ambani speaks.....Rajeev Desaihttp://www.blogger.com/profile/13770541646082106675noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-4899103722933689680.post-49477168636748235242009-08-06T12:02:56.519+05:302009-08-06T12:02:56.519+05:30Dear Rajeev,
The government has not let Reliance ...Dear Rajeev,<br /><br />The government has not let Reliance Industries off the hook for signing a private MoU with a firm run by the Anil Ambani Group to divide entire gas volumes from KG basin fields, thus holding industrial development to ransom, the petroleum ministry said. <br /><br />The Govt. for the first time got to know from the Bombay High Court judgment (of last month) that all volumes beyond 28 mmscmd committed to (Anil Ambani’s) RNRL and 12 mmscmd to NTPC were divided between RIL and RNRL in 60:40 ratio,” Petroleum Secretary R S Pandey told reporters here.<br /><br />Peak gas out from KG-D6 fields may be 100-120 million standard cubic meters per day.<br /><br />“The MoU also states that they are free to price the volumes beyond those locked in litigations. So practically, RIL may transfer KG-D6 gas for use in its refineries and petrochemical plants at $1 per mmBtu,” he said.<br /><br />Other industries will be dependent on the mercy of RIL and RNRL to get the scarce fuel, he said, adding that the government filed a petition in Supreme Court to get the MoU declared null and void to prevent such appropriation of natural resource through private agreements.<br /><br />“The Goverment have so far not taken any action against RIL as it has so far not done anything in contravention to the gas pricing and utilisation policy as derived from Production Sharing Contract,” Pandey said.<br /><br />The Production Sharing Contract clearly says that Government will frame a gas utilisation policy and approve pricing, Pandey said.Unknownhttps://www.blogger.com/profile/16904853150169701555noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-47874428215368726662009-08-04T19:57:35.486+05:302009-08-04T19:57:35.486+05:30Dear Somesh,
I agree that two brother may have act...Dear Somesh,<br />I agree that two brother may have acted as Gas is their property but then why only Anil is cursed and not Mukesh.Moreover , NTPC is also fighting for the gas it is suppose to get at $2.32/mmbtu ,what about that?You are not mentioning here anything about it.....!<br />But in his speech Anil has said that Gas prices has come down in international level then why it is sold so high?Why the gas production is delibaretly done slow?<br />Anyway,I think we needs to leave this topic to SC...and governmentRajeev Desaihttps://www.blogger.com/profile/13770541646082106675noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-53243048533464347612009-08-04T17:57:21.268+05:302009-08-04T17:57:21.268+05:30Dear Rajiv
I think the court will decide whether ...Dear Rajiv<br /><br />I think the court will decide whether Anil should get more or not. Natural gas is a strategic asset to any country; therefore it should be projected for larger interest of the nation. We should not be biased for an individual. I also think the Government has done a great job by becoming respondent in this case. Please read below <br /><br /> <br /><br />All the emerging economics which have abundant resources (like Brazil and China) have adopted National Ownership Theory for the larger interest of the nation and carries out petroleum exploration and development based on the national laws of each country. Also role of the government is to guide market development and work towards with a view to balance interests of consumers and producers to foster investment, develop infrastructure and promote market penetration. <br /><br /> <br /><br />The MOU which was signed between Ambani brothers in 2005 carries the contentious agreement between brothers to divide the KG D-6 gas of the country between them without following PSC guidelines. At the time of MOU they also overlook the Government guidelines as if these private players are operating in pure market capitalism where Government doesn’t set rules and regulations for business owners; this would make the economy driven by individuals profit motives resulting in exploitation of resources for individuals gains. <br /><br /> <br /><br />Therefore, the Government should not allow any private players to appropriate the gas for their gains. It should protect its rights in the interest of the nation.Unknownhttps://www.blogger.com/profile/16904853150169701555noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-8093361292325335552009-08-04T17:23:08.583+05:302009-08-04T17:23:08.583+05:30Dear Somesh,
If Ril Ind has no freedom to sell the...Dear Somesh,<br />If Ril Ind has no freedom to sell the gas less then government approved price then Mukesh has to pay the difference of that much amt to Anil somewhere else as only if Anil gets gass at $2.32/mmbtu then only he gets his part of share when they two parted...<br />Somesh, try to understand the whole situation.Try to understand the partisan formula between two brothers.Mukesh got more when they two parted ,that is what my commonsense says and hence it was decided that Anil's RNRL will get gas at $2.32 /mmbtu so that Anil gets his dues in proper manner but Mukesh is trying not to fulfill the agreement and that is reason Anil has taken it blatantly in AGM of RNRL.<br />Only if RNRL gets gas at $2.32/mmtbu then only Anil can get his due and moreover government has no right to say at what price Ril ind has to sell the gas to other parties.They only need to decide at what price government is going to get the gas and that is what Anil has said in his speech and that he also said that the case is still pending between NTPC and Ril Ind that NTPC needs to get the gas at 2.32/mmbtu as NTPC got the price while tenders were sends and NTPC has won through quoting the tender and they won the deal.Here is where Anil is saying that government decision to sell Gas at $4.12/mmbtu is even hurting their oen Naavratna PSU!While trying to help Mukesh , givernment is doing no good to its own PSU and thereby losing the opportunity of making a profit of Rs.30,000 cr.....Read Anil properly his speech again and again and you will find all answers there.....Rajeev Desaihttps://www.blogger.com/profile/13770541646082106675noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-22351200776464453392009-08-04T15:35:44.338+05:302009-08-04T15:35:44.338+05:30Dear Rajiv,
I think you did have chance to read...Dear Rajiv, <br /> <br />I think you did have chance to read PSC doc.For ur understanding plz read below <br /> <br />RIL does not have freedom to sell at a different price than Govt approved price of USD 4.2 per mmbtu. As per the Additional Solicitor General of India therefore, summarized that: (i) Article 21.6.1 obliges the contractor to sell all the gas at arms length prices to the benefits of the parties to the PSC; ii) The formula / basis on which the arms length sale is determined is required to be mandatorily approved by the Government of India prior to the sale of all gas; (v) the gas has to be marketed domestically and in accordance with the Government Policy on utilization of natural gas and approval of price formula / basis, (viii) <br /> <br />It was always understood by the parties to this litigation that, under the PSC, the contractor's right to market the gas is subject to the approval of price formula / basis of Government of India as well as the gas utilization policy of the Government of India. Therefore, no third party can suggest a different interpretation to the provisions of the PSC, in particular Article 21, other than the interpretation that has been laid out and understood by the parties to the PSC. <br /> <br />Extract from the NELP-I KG-D6 production sharing contract<br /> <br />Valuation of Natural Gas<br />21.6.1 The Contractor shall endeavour to sell all Natural Gas produced and saved from the Contract Area at arms-length prices to the benefits of Parties to the Contract<br />21.6.2 Notwithstanding the provision of Article 21.6.1, Natural Gas produced from the<br /> <br /> Contract Area shall be valued for the purposes of this Contract as follows:<br /> (a) Gas which is used as per Article 21.2 or flared with the approval of the Govt. or re-injected or sold to the Government pursuant to Article 21.4.5 shall be ascribed a zero value;<br /> (b) Gas which is sold to the Government or any other Government nominee shall be valued at the prices actually obtained; and<br /> (c) Gas which is sold or disposed of otherwise than in accordance with paragraph (a) or (b) shall be valued on the basis of competitive arms length sales in the region for similar sales under similar conditions.<br /> <br />The formula or basis on which the prices shall be determined pursuant to Articles 21.6.2 (b) or (c) shall be approved by the Government prior to the sale of Natural Gas to the consumers/buyers. For granting this approval, Government shall take into account the prevailing policy, if any, on pricing of Natural Gas including any linkages with traded liquid fuels, and it may delegate or assign this function to a regulatory authority as and when such an authority is in existence.<br />PSC clearly mentions that approval is required before any gas sale can commence.Unknownhttps://www.blogger.com/profile/16904853150169701555noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-47807054040577139862009-07-31T14:55:39.899+05:302009-07-31T14:55:39.899+05:30I agree with Rajeev, the more coverage that comes ...I agree with Rajeev, the more coverage that comes out on this the more I'm convinced that Anil does have a reason to cry foul. Now even we see the echo of the dispute in the Lok Sabha yesterday with some members demanding resignation of petroleum minister Murli Deora!<br />RNRL’s stand has bee upheld by 3 consecutive judgments of Bombay High Court. RIL’s gas supply commitment for Dadri dates back to Jan 2004 and The Petro Min knew RIL-RNRL gas supply terms from 2006so this belated intervention is completely unjustified. RIL must not be allowed to use PetroMin’s shoulders to renege on NTPC-RNRL contracts.Anonymoushttps://www.blogger.com/profile/02404029424477790072noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-30708940115696431022009-07-31T03:49:19.660+05:302009-07-31T03:49:19.660+05:30you mean to say what he has spoken is all wrong?Th...you mean to say what he has spoken is all wrong?There is no substance in it?<br />Then why government has a meeting and why they decided to take out some parts.....in their appeal?<br />Why Mumbai high court gave a verdict in favour of RNRL?What you are talking ?You mean to say Mumbai High court judges took bribe to give judgemenet in favour of RNRL?<br />I am surprised by your stand and understanding...Rajeev Desaihttps://www.blogger.com/profile/13770541646082106675noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-62681241585797699312009-07-30T16:04:11.487+05:302009-07-30T16:04:11.487+05:30Anil Ambani, in unlike Ambani style, decided to cr...Anil Ambani, in unlike Ambani style, decided to cry foul and slammed his brother, the Petroleum Ministry, the Government Advocate while trying to justify his case.Anonymoushttps://www.blogger.com/profile/13315099415212235067noreply@blogger.com