Centre to clarify on gas pricing in SC | business | Hindustan Times
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Centre to clarify on gas pricing in SC

Moving to protect NTPC's interests on sourcing gas from Reliance Industries, the government will this week file an application in the Supreme Court stating that its decisions on pricing of the fuel are without prejudice to the PSU's case against the Mukesh Ambani firm, reports HT Correspondent.

business Updated: Aug 25, 2009 21:32 IST
HT Correspondent

Moving to protect NTPC's interests on sourcing gas from Reliance Industries, the government will this week file an application in the Supreme Court stating that its decisions on pricing of the fuel are without prejudice to the PSU's case against the Mukesh Ambani firm.

A ministerial panel headed by Finance Minister Pranab Mukherjee on Tuesday decided to clarify before the apex court that the $4.20 per unit price fixed for RIL's KG-D6 gas, did not prejudice the state-run firm’s case seeking the fuel from RIL at $2.34 per unit price committed in 2004.

A source said the application would clarify that NTPC's case was based on an arm’s-length global bid, which was different from RIL’s dispute with Anil Ambani’s RNRL, which is over a private family agreement.

The application would also say that RIL cannot take refuge behind the government stand that it alone had the right to approve gas pricing to deny NTPC gas, as the $4.20 per unit price would apply to all power plants of the state-firm barring Kawas and Gandhar expansion projects for which RIL had committed $2.34 per unit.