Questioning Mukesh Ambani''s Reliance Industries price formula for its gas from the Krishna Godavari basin, younger brother Anil Ambani''s group on Sunday asked the government to come out with a pricing and allocation policy saying that arbitrary high prices will hurt the power and fertiliser producers. Contrary to other regulated sectors where capital expenditure and tariff are defined, how RIL''s capital expenditure was approved in a non-transparent manner, Chalsani wondered and said that high capital cost by gas producer would only lead to lower returns for the government and high prices for the end users.
Chalsani''s comments coincide with the on-going exercise in the government for fixing the price of natural gas and the formula by RIL, which seeks to sell gas at up to $4.58 per million British thermal unit at the landfall point at Kakinara in Andhra Pradesh. After detailed discussions, the Committee of Secretaries has sent its recommendations to the Petroleum Ministry, amid reports of inter-ministerial differences on the issue, for further action and a decision is expected to be announced soon.
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