Reliance signs accord to sell gas to NTPC

Reliance signs accord to sell gas to NTPC

New Delhi: Reliance Industries Ltd said it signed an accord to supply natural gas to power plants operated by NTPC Ltd.

The delivered price of the gas will be around $6.50 (Rs312.65) per million British thermal units (mmBtu), Reliance spokesman Manoj Warrier said by telephone from Mumbai on Thursday. Reliance will sell 610,000 cu. m of gas a day to NTPC’s plants at Anta in Rajasthan, Auraiya and Dadri in Uttar Pradesh and Faridabad in Haryana, he said.

The gas, according to a statement emailed by RIL’s spokesmen, said, “will be initially supplied only to the power plant in Anta due to capacity constraint in GAIL’s...pipeline," adding that the gas supply to the utility “is expected to commence within a week." GAIL (India) Ltd is India’s gas distribution monopoly.

NTPC and Reliance are battling a lawsuit over the supply of fuel to two other plants.

NTPC has said it will buy gas from Reliance’s field off the nation’s east coast without prejudice to its rights and contentions in a legal dispute over supplies to the Kawas and Gandhar plants in Gujarat.

Shares of NTPC climbed 1.97% to Rs212.40 at the close of Mumbai trading, while the benchmark Sensex rose 0.37%.

The utility, which filed a lawsuit in the Bombay high court in December 2005, says Reliance bid in a global tender to supply gas to NTPC at $2.34 per mmBtu for 17 years.

Mint’s Bhuma Srivastava in Mumbai contributed to this story.