Govt Threat To Veto Ambani...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[The Centre may not accept the Ambani family pact on the Krishna-Godavari (KG) basin gas if the deal overrides its gas utilisation policy, senior government officials said. The issue has arisen as Bombay High Court on June 15 had ruled that Mukesh Ambani&rsquo;s Reliance Industries (RIL) should honour its commitment to the pact and supply 28 million metric cubic metres a day of gas (mmcmd) to Anil Ambani&rsquo;s Reliance Natural Resources (RNRL). According to the officials, the pact cannot override the government&rsquo;s policy, and the state can intervene in the legal tussle if its interests take a hit. RIL is reportedly preparing to appeal in the Supreme Court against the high court verdict. Petroleum minister Murli Deora has said the gas produced in the country belongs to the government. RIL is only an operator like other firms. In the family deal that split Dhirubhai Ambani&rsquo;s business empire, the Mukesh Ambani-run firm had committed itself to supply 28 mmcmd to RNRL, which went to younger brother Anil under the terms of the deal. &ldquo;The gas in question has been allocated (to fertiliser, power and other sectors), based on the government&rsquo;s authority and rights under the production sharing contract (for the KG gas). The contract hopes to regulate gas marketing and allow for orderly growth,&rdquo; fertiliser secretary Atul Chaturvedi wrote to petroleum secretary R.S. Pandey. &ldquo;Our understanding is that any family settlement will not override the sovereign right of the government to formulate policies aimed at larger public interest,&rdquo; he said. Pandey said the ministry had not yet taken a view on the issue but would seriously consider the concerns raised by the stakeholders and take a legal opinion on the high court judgment. Officials said the government might convene a group of ministers to deal with the issue. Twelve urea companies were allocated 14.97 mmcmd of the gas. The government gave the first 40 mmcmd to fertiliser and power companies, with an eye on food and energy security. Meanwhile, a meeting proposed by RNRL with RIL on the KG gas failed to materialise as officials of Mukesh Ambani&rsquo;s company did not turn up. Only a four-member RNRL team reached the Trident Hotel in Mumbai. Courtesy: The Telegraph