We’re buying gas at competitive prices: NTPC | business | Hindustan Times
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We’re buying gas at competitive prices: NTPC

In its first public reaction on the gas pricing controversy, NTPC contested claims by Reliance Industries Ltd (RIL) that the state-owned power utility is buying costlier gas for its power plants and is passing on the impact of this high cost (of gas) to its customers.

business Updated: Sep 10, 2009 21:10 IST

In its first public reaction on the gas pricing controversy, NTPC contested claims by Reliance Industries Ltd (RIL) that the state-owned power utility is buying costlier gas for its power plants and is passing on the impact of this high cost (of gas) to its customers.

In a statement released on Thursday, NTPC said the gas allocated to it by the Empowered Group of Ministers (EGoM) from RIL’s KG D-6 was only 2.67 mmscmd (million metric standard cubic meters per day) while its existing gas based power plants are facing shortfall of 8-9 mmscmd.

Due to this NTPC said that it has been “trying to procure gas from various available sources and while doing so it is keeping in view the market situation and the interest of its consumers to make available maximum power.”

NTPC further said that it is a long-term player and works on corporate ethics. “For NTPC, fuel pass-through means protection of long-term interest of its customers by sourcing of fuel at the most competitive price,” it said.

It clarified that the spot R-LNG (regassified LNG) procured by it is at competitive rates from market through tenders and without any take or pay liability.

NTPC said the supply of gas at $2.34 (Rs 115) per unit will not only ensure cheaper power but also more power to customers by full capacity utilisation.

“Buying gas at $11 (Rs 539) per unit and refusing to buy gas at $4.20 (Rs 206) per unit with a hope to get gas at $2.34 per unit, is ridiculous,” an RIL official said.