State-run NTPC has asked the government for allocation of natural gas from RIL at a price of USD 2.34 per mmBtu, pending the outcome of its court case against the Mukesh Ambani-led firm on the issue.
Stating that it has requested Power Ministry to take up the issue with Oil Ministry subject to the outcome of court case, NTPC Chairman R S Sharma has sought necessary direction from the government for fuel supply at contracted price.
RIL in a 2004 NTPC tender offered to supply 12 million standard cubic meters per day of gas from its eastern offshore fields for 17 years at a price of USD 2.34 per million British thermal unit, but has refused supplies saying a firm contract was not concluded.
NTPC on the other hand says RIL`s acceptance of its Letter of Intent (LoI) was enough for the contract to be concluded. The matter is now before the Bombay High Court.
Sharma wrote to Power Secretary H S Brahma on November 17 that RIL has told the Supreme Court that KG D-6 field life was 11 years and gas could not be supplied to NTPC for 17 years.
As NTPC`s contract is for 17 years, RIL`s submission about availability of gas for 11 years only "has serious implications on the supply of gas to NTPC as per bid submitted by RIL and will go against NTPC`s interests," he wrote.
Sharma asked Power Ministry to request Empowered Group of Ministers for necessary direction for supply of gas to NTPC at "the price and terms of the contract with RIL" without prejudice to the ongoing case
| NIFTY 
