NTPC could lose money without gas pact, says RIL
Reliance Industries Ltd has told the Power Ministry about NTPC's reluctance to sign an agreement to buy gas from it and said that the public sector power firm stands to lose Rs 15,000 crore if it imports liquefied natural gas, reports HT Correspondent.business Updated: Sep 02, 2009 23:29 IST
Reliance Industries Ltd (RIL) has told the Power Ministry about NTPC's reluctance to sign an agreement to buy gas from it and said that the public sector power firm stands to lose Rs 15,000 crore if it imports liquefied natural gas.
The Empowered Group of Ministers (EGoM) had allotted 2.7 million standard cubic metres per day (mmscmd) of gas to NTPC from the 18 mmscmd allocation to the power sector from the first phase of gas production by RIL from its KG-D6 gas fields in the Krishna-Godavari basin.
In a letter to power secretary, HS Brahma, the President and CEO of RIL’s Petroleum Business, P.M.S. Prasad said that unlike the 35 other customers identified for the gas, NTPC is yet to sign a Gas Sales and Purchase Agreement (GSPA).
Prasad said an August 12 meeting had thrashed out issues and NTPC was supposed to get back after internal approvals.
“However, we are still awaiting a formal response from NTPC in spite of regular follow-up,” Prasad said in the letter dated August 31.
RIL had agreed to sign the GSPA with the caveat that the agreement would be "without prejudice" to the outcome of the case in Bombay High Court over a 2004 tender where the Mukesh Ambani firm had quoted $2.34 per mmBtu (million British thermal units) as price for gas to be supplied to NTPC's Kawas and Gandhar plants, he said.