According to Moily, while the proposed bank guarantee would secure the government’s interests, the higher pricing would protect the interests of Reliance Industries
M Veerappa Moily, minister for Petroleum and Natural Gas on Tuesday said that he is confident of resolving the issue of securing $135 million as bank guarantee from Reliance Industries Ltd (RIL) within a fortnight to enable the company to charge higher gas price from 1 April 2014.
“I am confident of settling the bank guarantee issue with Reliance within a fortnight,” Moily told reporters when asked if he would set a timeline for resolving the vexed matter.
According to the ministry, while the proposed bank guarantee would secure the government’s interests on one hand, the higher pricing would protect the interests of RIL on the other.
The bank guarantee is being sought as the government feels that the steep fall in KG-D6 gas output is not because of geological reasons, as is being claimed by RIL, but on account of the company hoarding the gas to make a windfall gain from next April when gas prices will be doubled.
If the hoarding allegations are true, then bank guarantees would be encashed with interest for the period from 1st April to the date the charges are proved.
He said unlike the flurry of negative news regarding the issue between the government and RIL, the only major issue is the arbitration settlement, which is pending with the courts now.
“We have, over the past few months, cleared as many as $7-billion worth investment proposals submitted by RIL,” the Minister said, adding that the media was only highlighting the negative news.
Moily said he expects the Supreme Court to appoint a third arbitrator at the earliest so that the issues between the nation’s largest private company and the Government could be resolved at the earliest.
The ministry had recently asked RIL to provide a bank guarantee of $135 million every quarter to get a higher price for natural gas from 1st April.
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when the Govt had leased the KG basin they have the full control and afterall the KG basin had been leased to highest bidder and Reliance being the highest bidder they have been alloted and first of all when Oil exploration and price fixing norms is concerned we are exploring in india why should be fix the price in Dollar and when we gwt oil why should we export and then import at higher rate we feel that there are three major lobbies in Prime Minister cabinenet one is OIl Lobby Finance Lobby and third is the official Lobby all these people what ever the import is done they get their due share apart from the salary its equivalent to steal money from their own house who is benefitted only God should punish them