New Delhi: Prime Minister Manmohan Singh is not intervening or mediating in the Ambani brothers' gas dispute, though he believes that the two top industrialists should patch up in national interest, an official in Prime Minister's Office said.
The official, who did not want to be named, said that the reports in a section of media were not true that Manmohan Singh has suggested the two brothers to follow a middle-path to resolve their ongoing dispute over natural gas from Krishna-Godavari basin.
He, however, said that Prime Minister's known views have been that the two warring brothers should patch up and work together.
"The PM's general approach has been that instead of fighting, they should patch up as both their groups contribute sizeably to India's economic growth," he said.
On Friday, the Centre had replied to Anil Ambani's allegations that it sided with Reliance Industries Ltd at the cost of its own profits and that of National Thermal Power Corporation (NTPC).
"The Government does not want to be involved in the gas war between the Ambani brothers. But it has to protect its own interests. The dispute between NTPC and RIL has nothing to do with that between the two Ambani companies. NTPC has the right to take its own decision," Union Power Minister Sushil Kumar Shinde had said in New Delhi on Friday.
A four-member group of ministers consisting of Law Minister Veerappa Moily, Petroleum Minister Murli Deora, Finance Minister Pranab Mukherjee and Power Minister Sushil Kumar Shinde met to discuss the Ambani row over the Krishna-Godavari Basin gas in New Delhi for the second time in the last two days.
After the meeting, Moily said the Government was looking for a similar stand in the case between Mukesh Ambani's RIL and NTPC as in the one between RIL and Anil Ambani's Reliance Natural Resources Ltd (RNRL). Both NTPC and the Anil Ambani group have separate court cases running with RIL over the pricing of oil in the KG basin.
THE GAS BATTLE
The battle for natural gas has two of India's biggest corporates slugging it out in the Supreme Court.
Ambani brothers are involved in a legal tangle over the KG Basin gas and who has the right to sell the gas produced and at what price.
The row began in 2005 when an MoU regarding pricing and distribution of gas was signed when the Reliance group split between the two brothers.
A year later Anil Ambani's RNRL filed a case against Mukesh's RIL over gas supply in the Krishna-Godavari Basin.
In 2007, a company judge restrained RIL from creating third party rights in gas meant for RNRL. Later that same year in October the Government approved the market price determined by RIL at above $4.20/unit.
The company judge on October 15, 2007, upheld RNRL's case, saying the MoU between parties was binding.
Both RIL and RNRL filed separate appeals against the judgment in December 2007. The Bombay High Court stepped in on June 15, 2009, asking both companies to honour the 2005 MoU
Mukesh Ambani's company moved the Supreme Court, seeking a stay on July 4 and on July 18 the Government filed a petition to nullify the Ambani family MoU.
Then on July 28 Anil Ambani accused Petroleum Minister Murli Deora helping Mukesh Ambani.
The Supreme Court will now hear the Government and RIL's appeals against the High Court's ruling on September 1.
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