Who is the government batting for?

  • 25/08/2008

  • Business Standard (New Delhi)

RATIONAL EXPECTATIONS Sunil Jain / New Delhi August 25, 2008, 1:01 IST While the battle between Mukesh and Anil Ambani over the supply of 28 mmscmd (million metric standard cubic metres a day) of natural gas from Reliance Industries Ltd's (RIL's) Krishna-Godavri Basin gas continues in the Bombay High Court, the government stance on it is getting more and more suspect. In the last two years, there have been at least three instances, the last of which just a few days ago, of the government actively stepping in on Mukesh Ambani's side to ensure RIL does not have to meet its obligations to sell this gas at previously contracted prices. But first, some quick facts of the matter. # "In 2003, the government-owned NTPC floated a tender asking for potential suppliers of 12 mmscmd of natural gas for its proposed power plants at Kawas and Gandhar for a period of 17 years. RIL won the bid when it quoted $2.34 per mmbtu (million metric British thermal units), edging out several global suppliers. Later, towards the end of 2005, RIL unilaterally modified the terms and conditions of its agreement with NTPC