CLARIFICATION BY PETROLEUM MINISTER ON GAS ALLOCATIONS TO KINGS INDIA CHEMICALS CORPN. AND KINGS INDIA POWER

The Minister of Petroleum & Natural Gas Shri Murli Deora clarified the issues regarding gas allocations to M/s. Kings India Chemicals Corporation Ltd. and M/s. Kings India Power Corporation Ltd. in the Rajya Sabha on Wednesday(30-04-2008). He informed the House saying:“The Ministry of Petroleum & Natural Gas had made allocations of 10,000 cubic metres of gas per day to M/s Kings India Chemicals Corporation Limited and 4.5 lakh cubic metres of gas per day to M/s Kings Indian Power Corporation Limited. These allocations were cancelled by the previous Government on 14th January, 2004. A petition was received by the Prime Minister in May, 2005 signed by Shri T.R.B. Rajaa, Chairman, M/s Kings India Power Corporation Ltd., alleging that gross injustice has been done to them and that they have been severely discriminated against. A discussion was held in PMO to ascertain the status; and the view of the Ministry of P&NG that it was not possible to give any relief to the petitioner, was noted. Having failed to secure any relief from the Government, the petitioner went to the Madras High Court in 2005. Mr. Baalu met me and had briefed about the great injustice done to the workers and investors. The Prime Minister’s Office has not issued any order or any instructions to help the Company. Certain references were received from Prime Minister’s Office in a routine manner without any recommendation on the basis of a representation made by Shri Selvakumar Baalu, Director of the Company. The Companies filed writ petitions in the Madras High Court against the cancellation of agreed allocation of gas. A learned Single Judge by order dated 10th October, 2007 passed the following orders: “The first respondent herein is directed to afford reasonable opportunity to the petitioner herein and thereafter make re-allotment in favour of the petitioner on the basis of the priority. This exercise can be done within a period of four weeks from the date of receipt of a copy of this order.” Since the order of the Single Judge was not implemented, the company filed Contempt Petition. In the meanwhile, Tamil Nadu Power Producers Association and Narimanam Zone Natural Gas Consumers Association filed Writ Appeals W.A. No. 241 and 244 of 2008 against the orders of the Learned Single Judge dated 10th October, 2007 in Writ Petitions Nos. 29602 and 32441 of 2005, before the Division Bench of the Madras High Court. Union of India, GAIL and the Companies were parties. The Division Bench of the Hon’ble High Court of Madras passed an order in the Writ Appeal on 19.02.2008, wherein the earlier order passed by the Single Judge on 10.10.2007 was set aside and the Government was directed to decide upon the applications of the firms on merit. In the meanwhile, one independent Power Producers Association and others have filed a Writ Petition Civil No. 9595 of 2007 in the High Court of Delhi wherein the same subject matter of allocation of gas is involved and a stay order was issued by the aforesaid High Court. It may be stated that not a single cubic metre gas has been supplied to the Companies. Since the issue relating to the supply of gas is pending before the High Court of Delhi in Writ Petition No. 9595 of 2007, the matter is sub judice.” RCJ/ls
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