RIL-RNRL verdict has no bearing on NTPC case: Power Minister
Power Minister Sushilkumar Shinde said the Supreme Court upholding the government's right to approve price and utilisation of gas was a "fair decision" and it had no bearing on the gas supply dispute between NTPC and Reliance Industries.delhi Updated: May 07, 2010 15:31 IST
Power Minister Sushilkumar Shinde on Friday said the Supreme Court upholding the government's right to approve price and utilisation of gas was a "fair decision" and it had no bearing on the gas supply dispute between NTPC and Reliance Industries.
"It has nothing to do with RIL-NTPC case," he said shortly after a three-judge bench of the apex court ruled that private family agreements cannot over-ride the government's right under Production Sharing Contract (PSC) to approve price and fix users of gas.
Supreme Court had ruled that Anil Ambani Group's Reliance Natural Resources Ltd cannot claim gas at concessional rate of 2.34 per million British thermal unit from RIL.
The rate RNRL is claiming is the same that RIL had bid in a 2004 NTPC tender to supply 12 million standard cubic meters per day of gas to the state utility.
The contract for supply could not be concluded over differences on terms and NTPC has dragged RIL to Bombay High Court seeking performance of the contract.
Shinde said today's judgement had nothing to do with NTPC's dispute with RIL. "It has nothing to do with my case of NTPC against RIL. No reference has been made on the dispute in the court judgement."