NTPC to move SC on gas price
India’s biggest power producer NTPC, currently embroiled in a controversy with Mukesh Ambani’s RIL for sourcing natural gas from the KG D6 gas fields, is all set to move to the SC to protect its rights on purchasing gas from RIL at a price of $2.34 (Rs 115) per unit versus $4.20 (Rs 206) per unit.business Updated: Aug 19, 2009 21:42 IST
India’s biggest power producer NTPC — currently embroiled in a controversy with Mukesh Ambani’s Reliance Industries Ltd (RIL) for sourcing natural gas from the KG D6 gas fields — is all set to move to the Supreme Court (SC) to protect its rights on purchasing gas from RIL at a price of $2.34 (Rs 115) per unit versus $4.20 (Rs 206) per unit.
“There is no other option left before NTPC,” a senior law ministry official told Hindustan Times on the condition of anonymity. “Both the Attorney General (AG) and the solicitor General of India have already advised NTPC to move to the Supreme Court.”
Sources said that NTPC will be seeking an interim relief from the apex court for release of gas as an interim measure. This means that NTPC will tell the court that its interests should not be hampered because of the dispute between the Ambani brothers.
Despite repeated attempts, the chairman and managing director NTPC, RS Sharma could not be reached for comments.
However, NTPC had on Tuesday informed the Bombay Stock Exchange that it was consulting lawyers to approach the “relevant” forum on the issue of procuring gas from RIL.
“The board of NTPC is capable of taking an appropriate decision on the issue,” said Sushil Kumar Shinde, minister of power.
In December 2005, NTPC had dragged RIL to the Bombay High Court, seeking specific performance of the tender bid to sell 12 million standard cubic meters per day of gas at $2.34 per unit to its Kawas and Gandhar expansion projects.