Govt has not decided on RIL gas price to NTPC: OilMin | delhi | Hindustan Times
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Govt has not decided on RIL gas price to NTPC: OilMin

delhi Updated: Aug 07, 2009 21:40 IST

Clarifying its stand on gas supply to NTPC, the Petroleum Ministry on Friday said it has not made up its mind regarding the price at which gas from Reliance Industries should be supplied at.

"It was not the intention of the Petroleum Minister Murli Deora to make a final statement on the issue, since the matter is subjudice," said S Sunderasan, Additional Secretary at the Ministry of Petroleum and Natural Gas.

He said the reports that gas to NTPC will have to be supplied at USD 4.2 per mmBtu and not at RIL's 2004 bid price of USD 2.34 had taken the minister's statement out of context.

"The government or the minister had no intention of making a final statement on the supply of gas. "In the course of discussion on calling attention notice in the Rajya Sabha on Thursday, Deora replied to a variety of issues raised by the members. He stated that the NTPC matter is sub judice and he cannot be quoted out of context," Sunderasan said.

Deora had on Thursday told Rajya Sabha that RIL had not sought approval for the USD 2.34 per mmBtu price quoted by it in NTPC's 2004 tender. Since, no approval had been sought by RIL as required under the Production Sharing Contract, the USD 4.20 per mmBtu price approved in 2007 will be applicable.

NTPC had in 2006 dragged RIL to the Bombay High Court seeking delivery of 12 million cubic meters per day of gas at the 2004 tender price, which RIL says cannot be performed as the Gas Sales and Purchase Agreement was not signed.