RIL cautions NTPC on commenting on sub-judice matters

RIL cautions NTPC on commenting on sub-judice matters
PTI
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First Published: Wed, Sep 16 2009. 03 56 PM IST
Updated: Wed, Sep 16 2009. 03 56 PM IST
New Delhi: Reliance Industries has cautioned that NTPC should not make comments on matters sub-judice lest they are construed as attempt to influence the outcome of its court case seeking natural gas at price committed in 2004.
Commenting on NTPC’s filing to the stock exchanges last week, RIL president (Gas) R.P. Sharma wrote to power secretary H.S. Brahma saying “(NTPC’s) statement purports to state that a contract came into existence between NTPC and RIL even before the court has heard the arguments and pronounced judgement.”
NTPC’s 2004 tender seeking supply of 12 mmscmd gas for expansion of its Kawas and Gandhar power plant, had clearly stated that the issue of Letter of Intent to the lowest bidder was to be followed by signing of agreement within stipulated period for the contract to come in place.
RIL bid the lowest $2.34 per mmBtu.
“Pursuant to the (post LoI) discussions (on clauses in the Gas Sales and Purchase Agreement), RIL in December 2005 had sent to NTPC a signed GSPA in duplicate containing ceiling for liability and essentially the same terms (gas price of USD 2.34 per mmBtu) as bid by RIL ... With NTPC not signing the GSPA sent by RIL and instead filing a suit before the Bombay High Court, RIL withdrew the offer,” he wrote.
RIL rubbished NTPC claims of savings to consumers on difference between the 2004 bid price and the Government approved rates of $4.2 per mmBtu saying the $2.34 per mmBtu gas price was for expansion projects at Kawas and Gandhar which do not exist today and the other rate was for existing plants.
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First Published: Wed, Sep 16 2009. 03 56 PM IST