NTPC to sign pact with RIL by Sept-end for govt-allotted gas | business | Hindustan Times
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NTPC to sign pact with RIL by Sept-end for govt-allotted gas

business Updated: Sep 11, 2009 00:00 IST

Mukesh Ambani-led RIL on Thursday accused NTPC of delaying signing a deal to buy government allotted gas, even as the PSU said it would not forego the allocation "at any cost."

RIL wrote to the power and oil ministries saying it had agreed to NTPC's condition of signing Gas Sales and Purchase Agreement (GSPA) for 2.67 mmscmd of gas at government rate of $4.2 per mmBtu without prejudice to its ongoing case with the state firm, but the PSU had not come forward.

However, Power Secretary HS Brahma hoped that the contract for supply of gas to NTPC's Anta, Dadri and Faridabad plants near here would be signed by this month-end.

"The discussions are on with RIL regarding singing the GSPA for our NCR (National Capital Region) power plants. We will not leave the gas at any cost" NTPC CMD RS Sharma said.

RIL sources said NTPC was citing the legal case pertaining to the 2004 tender for delaying the GSPA, but even the Anil Ambani group firm RNRL, which is separately fighting RIL on a similar count, is buying gas from KG-D6 for its other plants at USD 4.2 per mmBtu.

Of the 40 mmscmd of initial output from KG-D6 fields allocated to over 35 companies in fertilizer, power, LPG, steel and city gas, only NTPC is yet to sign the GSPA.

Brahma said NTPC will use the KG-D6 gas at plants other than Kawas and Gandhar, which were initially identified for usage of the fuel.