After almost one year of the row made by Mr. Anil Ambani in his AGM last year in July now when the Govt. has upheld the fact openly and substantially that all oil reserves belong to the Govt. and it has power and authority to allocate the price. Now Govt. has given six weeks period to the family to settle issues between them which was evolved by Kokilaben Ambani to sort out long unsavory battle between two sons regarding gas distribution.
Petroleum Minister Murli Deora has already made it abundantly clear in last July for both parties that he is “personally appalled and disgusted at how the two brothers are fighting over something that does not belong to them. Natural gas belongs to the government and is a public asset just like uranium or coal or iron ore.”
The point worth a note here is as I have already mentioned in my earlier post that Anil Ambani is not asking for ownership of gas but his entitlement from RIL's share.
Apex Court said that “Under the PSC, RIL does not become the owner of the natural gas, and there is nothing like specified physical quantities of natural gas to be shared by GoI and RIL”. It also endorsed “that renegotiation shall be within the framework of governmental policy and approvals regarding price, quantity and tenure of supply of gas”.
To make it rather easier to understand….
“Reliance Industries said the gas can’t be sold for less than $4.20 per million Btu. Reliance Natural can’t buy the gas as agreed unless the government approves the sale while the government in September 2007 set the price of gas from the Krishna Godavari field at $4.20 per million British thermal units when the price of crude oil is equal to or more than $60 a barrel. That’s 79 percent higher than the price agreed by both”
Justice Reddy also gave a direction to the government, he said “It is high time for the government to frame a comprehensive policy /suitable legislation for energy security of India and supply of natural gas under the PSC.”
Now the verdict of Supreme Court is out as a vindication of Govt’s stance. It said the company can sell gas to Anil Ambani’s Reliance Natural Resources Ltd. at government-set prices that are higher than those in a 2005 family accord. It asked the parties to renegotiate their contract within six weeks.
So next Six weeks are going to be cumbersome and deciding for Anil Ambani’s ADAG which already had faced a harsh slump the day prior up to 22% in stock market post Supreme court’s verdict.
Moral of the Story:
Why Do We Fight ?
To get what we don’t have is the most convenient and viable option but When Ambani’s are concerned.. All I can think of is
“What A Waste”
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