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Ministry asks lawyer to retrace stand

Sujay Mehdudia

NEW DELHI: Taking a “serious view” of the submissions made by its lawyer T.S. Doabia that National Thermal Power Corporation (NTPC) had not concluded any deal with the Reliance Industries Limited (RIL) to buy gas from its MG basin fields, the Petroleum Ministry has directed the lawyer to “retrace the stand” and apprise the Mumbai High Court about the real picture at the first given opportunity.

Stating that Mr. Doabia was not authorised to make any such submission before the court, highly placed sources in the Ministry said the lawyer’s submission took them by complete surprise. Interestingly, after the lawyer exceeding his brief in the court, Petroleum Secretary R. S. Pandey sought a report on the issue on August 22.

After the submission of the report on August 25, he issued “firm orders” that immediate steps be taken by the legal entity concerned to set the record straight before the court and apprise it at the first opportunity that the submission made by him regarding the NTPC-RIL row was not the view of the Petroleum Ministry.

The sources said Mr. Pandey directed the lawyer to file a report before the court stating the correct position and the NTPC’s stand maintained over the years.

Mr. Doabia reportedly stated that NTPC had not concluded any contract with the RIL to buy gas from D6 block at $2.34 per mmBtu (million British thermal unit.)

The NTPC-RIL deal is at the core of a dispute between the Ambani brothers, with the younger one claiming a minimum of 18 million standard cubic meters a day of gas from D6 at the $2.34 per mmBtu price bid by the RIL in a NTPC tender in 2004.

NTPC has filed a case against the RIL in the Bombay High Court to get the Mumbai-based firm to honour the bid it made in the international tender.

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