NTPC willing to buy gas from Reliance Industries

State-run power company NTPC Ltd is willing to buy gas from the Mukesh Ambani-owned Reliance Industries Ltd (RIL) at $4.2 per million British thermal units, but with exceptions, a top official said in New Delhi on Tuesday.

State-run power company NTPC Ltd is willing to buy gas from the Mukesh Ambani-owned Reliance Industries Ltd (RIL) at $4.2 per million British thermal units, but with exceptions, a top official said in New Delhi on Tuesday.

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RS Sharma, chairman and managing director of NTPC, formerly National Power Thermal Corp, told reporters in New Delhi that the company might sign an agreement with RIL to purchase gas at the market price, but not for the plants under dispute in court.

"We are open to buying gas from RIL without prejudice to our (court) cases over Kawas and Gandhar projects," Sharma said.

The companies are in a legal battle over a gas supply agreement reached in 2005 according to which RIL was to supply gas to NTPC's Kawas and Gandhar projects in Gujarat at a lower price.

The power utility is planning to buy 2.67 million standard cubic metres of gas per day from RIL for its gas-based power projects, which have a combined power generating capacity of about 4,000 MW, he added.