The oil ministry has canceled the authorisation of
pipelines that were to be implemented by the Mukesh Ambani promoted
Reliance Gas Transportation & Infrastructure (RGTIL), reports
CNBC-TV18's Nayantara Rai quoting sources.
Sources say that the oil ministry has accepted the PNGRBs recommendation and communicated this to RGTIL. Sources in the company have also confirmed receiving a letter and the fact that they are drafting a response to that letter.
PNGRB had recommended cancellation of authorization to pipeline stretching amounting to about 2175 km. The oil ministry has decided on this course of action believing it is in the best administrative interest and also because it was not impressed by the response that was given by RGTIL on why it was late in implementing the pipeline. It was because it had not finished and implemented the pipeline in the time allotted.
RGTIL had argued that there is no firm source of gas supply at the moment. Only when it is able to firm up a gas source, it will be rational for it to actually lay out those pipelines.
It had requested the oil ministry to help in tying up such a firm oil source and that it would require 36 months from the time of doing so. Sources in the oil ministry saying Reliance Gas is still not giving a firm commitment on when those pipelines could be completed and that is why it has decided to cancel those licenses.
So again it seems as the relations between Mukesh Ambani and the oil ministry are strained, will this one head into arbitration? Will there be any legal recourse? We will have to watch out.
Sources say that the oil ministry has accepted the PNGRBs recommendation and communicated this to RGTIL. Sources in the company have also confirmed receiving a letter and the fact that they are drafting a response to that letter.
PNGRB had recommended cancellation of authorization to pipeline stretching amounting to about 2175 km. The oil ministry has decided on this course of action believing it is in the best administrative interest and also because it was not impressed by the response that was given by RGTIL on why it was late in implementing the pipeline. It was because it had not finished and implemented the pipeline in the time allotted.
RGTIL had argued that there is no firm source of gas supply at the moment. Only when it is able to firm up a gas source, it will be rational for it to actually lay out those pipelines.
It had requested the oil ministry to help in tying up such a firm oil source and that it would require 36 months from the time of doing so. Sources in the oil ministry saying Reliance Gas is still not giving a firm commitment on when those pipelines could be completed and that is why it has decided to cancel those licenses.
So again it seems as the relations between Mukesh Ambani and the oil ministry are strained, will this one head into arbitration? Will there be any legal recourse? We will have to watch out.
No comments:
Post a Comment