New Delhi: Brushing aside Anil Ambani's criticism of the rejection of a proposal on gas supply to his group's power projects, Petroleum Ministry on Monday said the decision was in line with globally accepted business practices and there was no question of reviewing it.
"It is reiterated that the decision has also been guided by the Government's firm commitment to follow transparent, stable and globally accepted business practices in an area where a level playing field has been provided to all operators from India and abroad," a Ministry statement said.
The rejection of Reliance Industries' proposal to sell gas to Reliance Natural Resources Ltd at $2.34 per million British thermal unit (mBtu) was "entirely on merit and in line with the spirit of the policy to promote investment in the exploration of hydrocarbons."
Earlier in the day, Petroleum Minister Murli Deora said that there would be no review of the decision.
"There will be no review of the decision. If we allow the price RIL has proposed, the government will suffer huge losses," he said.
Stating that the New Exploration Licensing Policy (NELP), under which RIL won the D-6 block, provided for freedom to market the gas in India, the ministry said: "It would be inappropriate to think of decisions which are contrary to the provisions of legally enforceable contracts and may drive away investors from this area."
Anil Ambani had on Sunday termed as "unfortunate" and "premature" the rejection saying the decision should have been referred to an expert committee.
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