HC asks Petroleum Min to hear Welspun, Ispat on gas issue

Posted By: Religare
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HC asks Petroleum Min to hear Welspun, Ispat on gas issue
The Indian ministry of Petroleum and Natural Gas has received directives from the Bombay High court to hear to the petitions filed by Welspun Maxsteel and Ispat Industries, challenging the oil ministries order to supply gas from RIL"s K-G basin only to priority sector.

The two major producers of sponge iron are fearing a productivity halt owing to drastic cut in supply of natural gas from KG basin due to decline in gas output and government policies. The sponge iron producers of the country have also argued that a pro-rata cut in gas supplies can obstruct the targeted steel production in India, resulting in import burden to the sector.

A High court bench headed by Justice Mrudula Bhatkar has also asked the ministry to address the similar issues filed by other industries on the gas allocation, on 11 May"11 and take a decision by 18 May"11.

Story first published: Tuesday, May 10, 2011, 12:30 [IST]
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