Supreme Court gave notice to the government to revive KG-basin gas

The Supreme Court on 6 January 2014 ordered the Government of India to revive the decision to double the price of Krishna-Godavari (K-G) basin gas.

Member of Parliament Dasgupta filed a PIL challenging the hike that claimed that the hike will benefit Reliance Industries Ltd. He urged the court to order initiation of termination proceedings against the RIL over extraction of natural gas from the K-G basin based on Rangarajan committee formula.

Bench led by Chief Justice P Sathasivam observed that the decision to hike the price, while the matter remained pending in the court. The final hearing is scheduled to March 2014. 

Background

Recently the Cabinet Committee on Economic Affairs (CCEA) approved the Reliance Industries (RIL) to sell KG-D6 block gas at higher price based on Rangarajan committee formula.

CCEA allowed RIL to sell gas at higher price with bank guarantee

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