NTPC not to suffer Rs 30,000 cr loss: Govt
State-run NTPC will not suffer Rs 30,000 crore loss if it was to get natural gas at prices higher than those committed by Reliance Industries five years ago.delhi Updated: Dec 17, 2009 16:43 IST
State-run NTPC will not suffer Rs 30,000 crore loss if it was to get natural gas at prices higher than those committed by Reliance Industries five years ago, Power Ministry has told Parliament.
"There is no loss to NTPC on account of fuel cost as the fuel cost is a pass-through to beneficiaries (customers)," Minister of State for Power Bharatsinh Solanki said in a written reply to Rajya Sabha.
NTPC had taken RIL to court seeking implementation of the Mukesh Ambani-run firm's 2004 bid to supply 12 mmscmd of gas at USD 2.34 per mmBtu for 17 years.
"NTPC's tariff is determined by Central Electricity Regulatory Commission (CERC). As per the regulation for fixing the tariff under the Electricity Act 2003, the fuel cost (price of gas) is a pass-through to beneficiary states/union territories who in turn realise this from consumers," he said.
M V Mysura Reddy (TDP) had asked if RIL's dishonouring of the contract would cause a loss of Rs 30,000 crore to NTPC. "However, to protect the long term interests of its customers, NTPC always strives to source fuel at the most competitive price," Solanki said.
He said the fuel cost at the delivered price of gas of USD 3.30 per mmBtu (as per the 2004 tender) works out to Rs 1.07 per unit while the same at the delivered cost of USD 6.67 per mmBtu (as per Government approved rates for RIL's KG-D6 gas field) comes to Rs 2.17 per unit.