The Ambanis’ family pact, which divided the gas output from the KG D6 field between brothers Mukesh and Anil, cannot override the Centre’s right to formulate gas utilisation policies aimed at public interest, the fertiliser ministry has said. Urea plants were given top priority in the sale of natural gas from Reliance Industries’ D6, but the Bombay high Court’s June 15 order had paved the way for 70 per cent of the initial volumes to come RNRL’s way.

“The gas in question has been allocated (to fertiliser, power and other sectors), based on the Centre’s authority and rights under the Production Sharing Contract (for D6), aimed at regulating gas marketing and allowing their orderly growth,” fertiliser secretary Atul Chaturvedi wrote to his counterpart in the petroleum ministry, RS Pandey, on June 24. “Our understanding is that any family settlement would not override the sovereign right of the Centre to formulate policies aimed at larger public interest.”

Twelve urea manufacturing companies were allocated 14.97 million cubic meter per day, when the government prioritised the sale of the initial 40 mmcmd from D6, primarily between fertiliser and power companies, based on food security and meeting energy deficit.

But the Bombay High Court, on June 15, had ruled that RIL should honour its commitment to the family split agreement and supply 28 mmcmd gas to RNRL. The price in the NTPC tender was $2.34 per mmBtu, 44 per cent lower than the government-approved rate of $4.20 per mmBtu.