Gas row: Govt says arrangement for NTPC can’t be equated with a private accord

The Government has filed its affidavit in the Supreme Court on the ongoing gas row between the Ambani brothers saying that the arrangement for public sector NTPC cannot be equated with any agreement between RIL and RNRL.

The Government has filed its affidavit in the Supreme Court on the ongoing gas row between the Ambani brothers saying that the arrangement for public sector NTPC cannot be equated with any agreement between RIL and RNRL.

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The apex court had sought the response after the Anil Ambani-led RNRL had consented to Government being made a party in the dispute.

RNRL contended that it was entitled to receive the gas at USD 2.34 per unit from Mukesh Ambani group RIL which had entered into an arrangement for supplying gas to NTPC at that rate.

“The rights and obligation of NTPC and RIL cannot be regarded as similar in status to the private arrangement as in the case of RIL and RNRL because NTPC is not only a PSU but the process involved for price determination in the case of NTPC gas was by international competitive bidding,” the government said in the affidavit.

However, the government said the price offered by the contractor to the NTPC will require scrutiny and approval of the government under the Production Sharing contract(PSC).

“The central government will take an appropriate decision in the case of NTPC as and when a need arises. Such a decision based on public interest, if in favour of NTPC cannot be termed as discriminatory or arbitrary,” the affidavit placed before a bench headed by K G Balakrishnan said.