No iota of substance in allegation of gas hoarding: RIL to SC

NEW DELHI: Reliance Industries Ltd ( RIL) has refuted the allegation in the Supreme Court that it is deliberately reducing production of gas in KG basin in anticipation of a higher gas price and said it has taken all steps for arbitration proceedings with Centre to sort out all disputes.

In a 51-page affidavit, the company contended that the allegations levelled by CPI MP Gurudas Dasgupta in his PIL is baseless and there is "not an even an iota of substance" in it.

"These Respondents (RIL and others)submit that there is not even an iota of substance in this allegation. The petitioners seek to allege that by reducing production of gas, these respondents have hoarded the gas in anticipation of a higher gas price.

"Any allegation which suggests that a contractor has possibly deliberately suppressed the production of gas from a producing well(s) betrays complete disregard of the technical and technological realties of the process of production of natural gas from these reservoirs," the affidavit said.

It said that the actual rate of flow of gas cannot even be ascertained with certainty till the production actually commences as gas is to be produced from the pores of complex geographical rock formations.

The response was filed in compliance with apex court's order directing the company to file its stand on the allegation levelled by Dasgupta who questioned Centre's decision to raise the gas price.

"The petitioners allege that the contractor is deliberately underutilising the facilities to pressure the government into agreeing an unreasonably high price for gas.

"These allegations are misconceived, completely unfounded and made in deliberately feigned ignorance of the fact that production levels are subject to factors outside of the contractor's control," it said.