Power ministry favours gas allocation from RIL to NTPC

Power ministry favours gas allocation from RIL to NTPC

New Delhi: Echoing law ministry’s opinion, power ministry has favoured allocation of gas from Reliance Industries’ KG-Basin block to NTPC and will push for the same in the inter-ministerial meeting next week.

“We would push for NTPC’s case in the eGOM on 10 November," a power ministry official told the news agency.

Earlier, the solicitor general, Gopal Subramanium had told the law ministry that the empowered group of ministers (eGOM) should consider the case of NTPC (allotment of gas to its projects). The advice was subsequently routed to petroleum ministry through power ministry.

The assurance of gas allocation to NTPC will enable them to seek investment approval from their Board.

At present, Department of Public Enterprises (DPE) guidelines prohibit investment approval by the CPSU Boards without input tie ups including fuel.

Ministry of power has requested for the allocation of 12 mmscmd (million standard cubic metres of gas per day) to NTPC for their expansion projects at Kawas and Gandhar (2,600 MW).

NTPC is fighting a legal battle with Mukesh Ambani-led Reliance Industries in the Bombay High Court over supply of 12 mmscmd for its gas-based power plants for 17 years at $2.34 mmbtu (million British thermal unit).

Meanwhile, EGoM may also consider allocating 4.67 mmscmd to 1,500 MW Bawana project in Delhi; 3.08 mmscmd to Lanco’s 770 MW Kondapalli expansion project in Andhra Pradesh; 3.07 mmscmd for GMR’s 768 MW Vemagiri expansion project in Andhra Pradesh; 2.62 mscmd to 702 MW Pipavav project in Gujarat; 1.31 mmscmd to 351 MW Hazira unit of Gujarat State Electricity Corp and 0.84 mmscmd for 225 MW Kashipur project in Uttarakhand.