The ministry is contemplating seeking the law ministry’s view on slapping the suit on RNRL over a claim that government share from KG-D6 initially will be just Rs 500 crore, while RIL will earn a super-normal profit of Rs 49,500 crore.
RNRL and its executives stuck to this claim despite the government clarifying in a written statement that its revenues from KG-D6 over the life of the field would be more than Rs 84,000 crore, with a clear objective to “malign and tarnish its image”.
The file prepared for the same notes that government’s take from KG-D6 in the first year of gas production will be Rs 700 crore at a minimum output of 40 mmscmd (million metric standard cubic metres a day). At peak output of 80 mmscmd, likely next year, the government will get Rs 1,200 crore in royalty and profit share.
In any case, the earnings will be more than Rs 500 crore, they said, pointing out that royalty at the $4.2 per mmBtu (metric million British thermal unit) approved price alone came to Rs 541 crore in the first year.
It is a matter of great concern if the apprehensions in the market were to be true that the highest law officers of the country... are being used to further the interest of a private corporate behind the shield of NTPC,” Rao wrote. NTPC is fighting Mukesh Ambani-run RIL to get gas at a price of $2.34 mmBtu, while RNRL too is engaged in a separate legal battle with RIL to get gas at the same price. At the government-approved sale price of $4.2 per mmBtu, the total revenue from sale of 40 mmscmd gas in first year would be just over 10,800 crore, which would double next year when output peaks to 80 mmscmd.
As output peaks, the government’s royalty would increase, the source said, adding that government’s profit share in the initial years would be small but would rise once the contractor recovers his cost in the next 3-4 years. Industrialist Anil Ambani first made the allegations of paltry government earnings at the shareholders meeting of RNRL and his group persisted with it through an advertisement campaign. They were again repeated even after the government came out with a statement saying the total government revenues from KG-D6 field would be Rs 84,000 crore.
The oil ministry note also talks of writing to market regulator Sebi and the Ministry of Corporate Affairs on the campaign, seeking to know the source of funding and if the board of RNRL, including its independent directors had approved such expenditure.
Meanwhile, lawyers of Mukesh-led Reliance Industries termed the Anil Ambani group’s advertisement campaign as “grossly defamatory” and have written to the publications seeking details of the persons who released these ads and made the payments.
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RNRL and its executives stuck to this claim despite the government clarifying in a written statement that its revenues from KG-D6 over the life of the field would be more than Rs 84,000 crore, with a clear objective to “malign and tarnish its image”.
The file prepared for the same notes that government’s take from KG-D6 in the first year of gas production will be Rs 700 crore at a minimum output of 40 mmscmd (million metric standard cubic metres a day). At peak output of 80 mmscmd, likely next year, the government will get Rs 1,200 crore in royalty and profit share.
In any case, the earnings will be more than Rs 500 crore, they said, pointing out that royalty at the $4.2 per mmBtu (metric million British thermal unit) approved price alone came to Rs 541 crore in the first year.
It is a matter of great concern if the apprehensions in the market were to be true that the highest law officers of the country... are being used to further the interest of a private corporate behind the shield of NTPC,” Rao wrote. NTPC is fighting Mukesh Ambani-run RIL to get gas at a price of $2.34 mmBtu, while RNRL too is engaged in a separate legal battle with RIL to get gas at the same price. At the government-approved sale price of $4.2 per mmBtu, the total revenue from sale of 40 mmscmd gas in first year would be just over 10,800 crore, which would double next year when output peaks to 80 mmscmd.
As output peaks, the government’s royalty would increase, the source said, adding that government’s profit share in the initial years would be small but would rise once the contractor recovers his cost in the next 3-4 years. Industrialist Anil Ambani first made the allegations of paltry government earnings at the shareholders meeting of RNRL and his group persisted with it through an advertisement campaign. They were again repeated even after the government came out with a statement saying the total government revenues from KG-D6 field would be Rs 84,000 crore.
The oil ministry note also talks of writing to market regulator Sebi and the Ministry of Corporate Affairs on the campaign, seeking to know the source of funding and if the board of RNRL, including its independent directors had approved such expenditure.
Meanwhile, lawyers of Mukesh-led Reliance Industries termed the Anil Ambani group’s advertisement campaign as “grossly defamatory” and have written to the publications seeking details of the persons who released these ads and made the payments.
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