RNRL asks SC for $2.34 per mmbtu for 17 years: Sources

Sources inform CNBC-TV18 that the government may reply to the Supreme Court's notice on Friday. Sources stated that RNRL is now asking the Supreme Court for USD 2.34 per mmbtu, which is the price for 17 years.

Here is a verbatim transcript of Nayantara Rai's comments on CNBC-TV18. Also watch the accompanying video.

What we are picking up from sources is that the government may reply to the Supreme Court's notice on Friday. We believe from sources that the deadline for that reply is Saturday 12:30 pm.

We have also learnt from sources that in the affidavit that will be submitted to the Supreme Court, the government is going to ask the Supreme Court that none of the gas supply agreements as well as none of the gas supplies that companies with such agreements have been signed, should be disrupted. In its special leave petition (SLP), RNRL had asked for interim relief from the Supreme Court saying that the 40 mmscmd of gas should be halted and that in fact immediate supply of gas should be made to RNRL at its terms that it is asking for, which is USD 2.34 per mmbtu for 17 years.

We have also learnt from sources that RIL is likely to highlight Para 311 of the High Court order. This Para 311 is a Bombay High Court judgement where the Division Bench has concurred with the single bench.

This says," The terms as mentioned in the MoU and GSMA need to be suitable for both the parties subject to the government's policies and national, international practice in supply of gas or such other products."

It goes on to say in part 7, "The contract of such nature is subject to the government's approval in view of NELP and production sharing contract and such related government policies, but keeping in view the several factors including the freedom and right of the contractor, which is RIL and the limited and restricted scope of interference in such permissible commercial aspects of the contractor, unless, it is in breach of any public policy and public interest."

So, interestingly, this is what RIL is going to pick up because as far as it is concerned, it has found something in the Bombay High Court judgement where the court has said that government approval is necessary.