Windfall charge to sabotage NELP: RIL
The letter-war in the Ambani gas dispute continues unabated. The latest salvo has been fired by Mukesh’s RIL which hit back at allegations of notching up super-normal profit from the Andhra offshore field alleged by Anil’s RNRL.
By TNN |
NEW DELHI: The letter-war in the Ambani gas dispute continues unabated. The latest salvo has been fired by Mukesh���s RIL which hit back at allegations of notching up super-normal profit from the Andhra offshore field alleged by Anil���s RNRL. In a letter to the oil ministry , RIL said the charges were aimed at sabotaging the government���s efforts to get investments in oil sector.
���What makes the current campaign even more calumnious is that it has been launched not only when the matter is sub-judice before the Supreme Court, but also seems timed to sabotage the government���s entire efforts to get investments under NELP-VIII ,������ RIL executive director and head of its oil business, P M S Prasad, said in a letter to oil secretary R S Pandey.
Offering to make any clarification that may be required on the issue, Prasad says, ���The interests of the country and its people are being unfortunately held to ransom by a group of people, who seem to be stopping at nothing, be it slander or blatant perversion of facts, to achieve questionable aims������ .
The letter appears to be responding to Anil���s making public statements on the matter and a front-page ad campaign in newspapers that alleged RIL stands to make super-normal profits of Rs 50,000 crore with the ministry���s support. The RNRL ad campaign alleged that RIL will make windfall profit by selling gas $4.2 per unit price set by the government , while the Centre���s share would be a mere Rs 500 crore.
RNRL is battling RIL in the Supreme Court for getting gas at $2.34 per unit, the price quoted in the 2003 tender by staterun generation utility NTPC, as per the family demerger agreement. ���In the case of KG D6 gas, the profit petroleum share of the government increases from 10% to 85% with progressive increase in the investment multiple,������ RIL said in the letter, written on Thursday , calling the allegations as something that were ���plucked out of thin air������ .
Prasad had also written to Pandey on Thursday alleging that state power utility NTPC was misleading the government by denying knowledge of a mandatory price approval that RIL needs to supply gas at a contracted price of $2.34 per unit. The PSC mechanism works on the principle that with larger reserves being established and increasing profitability , the government gets an exponentially higher share in the profit petroleum.
���Against the government���s revenue of $16.5 billion, the contractor���s net inflow over the life of the field is estimated to about $10.7 billion, which implies that of the government���s take is 61% compared to 39% for RIL.
���What makes the current campaign even more calumnious is that it has been launched not only when the matter is sub-judice before the Supreme Court, but also seems timed to sabotage the government���s entire efforts to get investments under NELP-VIII ,������ RIL executive director and head of its oil business, P M S Prasad, said in a letter to oil secretary R S Pandey.
Offering to make any clarification that may be required on the issue, Prasad says, ���The interests of the country and its people are being unfortunately held to ransom by a group of people, who seem to be stopping at nothing, be it slander or blatant perversion of facts, to achieve questionable aims������ .
The letter appears to be responding to Anil���s making public statements on the matter and a front-page ad campaign in newspapers that alleged RIL stands to make super-normal profits of Rs 50,000 crore with the ministry���s support. The RNRL ad campaign alleged that RIL will make windfall profit by selling gas $4.2 per unit price set by the government , while the Centre���s share would be a mere Rs 500 crore.
RNRL is battling RIL in the Supreme Court for getting gas at $2.34 per unit, the price quoted in the 2003 tender by staterun generation utility NTPC, as per the family demerger agreement. ���In the case of KG D6 gas, the profit petroleum share of the government increases from 10% to 85% with progressive increase in the investment multiple,������ RIL said in the letter, written on Thursday , calling the allegations as something that were ���plucked out of thin air������ .
Prasad had also written to Pandey on Thursday alleging that state power utility NTPC was misleading the government by denying knowledge of a mandatory price approval that RIL needs to supply gas at a contracted price of $2.34 per unit. The PSC mechanism works on the principle that with larger reserves being established and increasing profitability , the government gets an exponentially higher share in the profit petroleum.
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���Against the government���s revenue of $16.5 billion, the contractor���s net inflow over the life of the field is estimated to about $10.7 billion, which implies that of the government���s take is 61% compared to 39% for RIL.
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