Reliance ups ante against oil min, refuses to obey its order

Jul 20, 2010 |

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New Delhi, July 20: Upping its ante against the oil ministry, Reliance Industries has refused to give natural gas to new customers by cutting supplies to power and fertiliser plants saying the ministry's order was in violation of the gas utilisation policy and wants panel of ministers to discuss it.

The Oil Ministry had on July 12 written to RIL asking it to make a "pro-rata" cut in gas supplies to all existing customers if the production from its eastern offshore KG-D6 fields cannot support new customers like Essar Oil's Vadinar refinery.

RIL on July 15 wrote to Petroleum Minister Murli Deora saying it had not signed contracts to supply KG-D6 gas with customers like Essar, as they were not ready to receive gas when available and so allocation made to them has lapsed.

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