NTPC ready for gas deal, with riders

NTPC ready for gas deal, with riders
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First Published: Wed, Jun 24 2009. 12 53 AM IST
Updated: Wed, Jun 24 2009. 12 53 AM IST
New Delhi: State-owned NTPC Ltd is willing to sign the gas sales purchase agreement, or GSPA, with Reliance Industries Ltd, or RIL, for 2.67 million standard cubic metres of gas per day (mscmd) at the $4.2 (Rs205.38) per million British thermal unit (mBtu) price set by the government for its power projects other than Kawas and Gandhar, provided other issues raised by it are resolved.
“We are open to buying 2.67 mscmd at market prices without prejudice to our cases over Kawas and Gandhar projects. We had written a letter to RIL to come and discuss the issues with us. In spite of repeated reminders, we are yet to hear from them,” R.S. Sharma, chairman and managing director of NTPC, said. NTPC has objected to the take or pay clause in GSPA. It is also not willing to pay the marketing margin of $0.12 per mBtu to RIL.
The decision to allocate 18 mscmd of gas produced by RIL from its KG-D6 block to power generating firms, including NTPC, was done by a five-member empowered group of ministers, headed by then stand-in finance minister Pranab Mukherjee, on 9 April.
“NTPC is an independent company and the issue has to be resolved between them and RIL,” Union power minister Sushil Kumar Shinde said.
NTPC and RIL are fighting a lawsuit in the Bombay high court over the price at which the latter will supply 12 mscmd of gas to the former’s Kawas and Gandhar facilities for 17 years. NTPC claims the two agreed to $2.34 per mBtu. RIL wants to sell at the $4.2 per mBtu price set by the government.
utpal.b@livemint.com
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First Published: Wed, Jun 24 2009. 12 53 AM IST
More Topics: NTPC | Gas deal | RIL | GSPA | Sushil Kumar Shinde |