Released on = August 20, 2007, 11:59 pm

Press Release Author = newage media

Industry = Energy

Press Release Summary = Govt playing with energy security: Ram Naik

Press Release Body = The row over pricing of gas has gained a new dimension with
past and present lawmakers from the Right and Left airing their views on the issue,
which is currently being examined by an empowered Group of Ministers.

While former petroleum minister and BJP leader Ram Naik accused the Centre of trying
to default on commitments to investors, union leader Tapan Sen, MP, sought the Prime
Minister\'s intervention to ensure Reliance Industries (RIL) supplied gas to
customers at a price agreed in 2004.

Their statements come even as a covert and overt battle is on between Mukesh
Ambani-led RIL, which has raised the price of gas from KG-D6 Basin, and Anil Ambani
Group firm RNRL that has challenged the move in Bombay High Court.

\"NELP made the world look at India and new investments saw the largest gas discovery
being made (in Krishna Godavari basin by RIL in 2002). India is short of both oil
and gas and needs such investments. Attempts to renege on promises will definitely
not go down well\" with investors, he said.

\"This has reference to reports that PM\'s Economic Advisory Council has been asked to
look into the pricing for gas from KG-D6 Basin... urge upon you to restrict the
focus on pricing of gas to the rate quoted by RIL in 2004 for NTPC project,\" Sen
said in a letter to the Prime Minister.

Naik, however, argued that the New Exploration Licensing Policy gives producers the
freedom to sell oil and gas at market prices.

Using the rights granted to it under Production Sharing Contract of the NELP, RIL
proposed to price the gas at 4.33 dollars per million British thermal unit, which is
said to be lower than the market price of 4.75 to 5.70 dollar per mBtu.

However, in a 2004 bid called by NTPC, RIL-NIKKO had quoted 2.97 dollar per mBtu as
the delivered price.

\"This (old) price is nowhere near the price being aired by RIL in the presently
ongoing debate on gas pricing, which is highly inflated...,\" Sen noted in the letter
dated August 1.

The new price has also been opposed by power and fertilizer sectors, who want
government to regulate prices. To resolve the issue, the government has set up an
Empowered Group of Ministers.

\"The nation\'s energy security is at stake,\" Naik said, adding that it would not be
appropriate for the government to decide gas pricing.

A host of foreign firms including top rank BP Plc and BG Group have warned
government of investor backlash if commitments in NELP were reneged.



Web Site = http://newagemedia.com

Contact Details = 52,kalyandas,udyog bhavan,behind century bazar,
prabhadevi,worli,mumbai-25