Even as a court hearing on gas supplies between state-run utility NTPC and Reliance Industries (RIL) is scheduled on Wednesday, the two
Confirming this, NTPC chairman RS Sharma told ET: "We have sent them (RIL), a revised copy of the draft GSPA (gas sales purchase agreement). We are likely to meet RIL officials this week to sort out the issues related to the deal."
The officials from the two companies will meet later this week to decide on GSPA for supply of 2.67 million metric standard cubic meters per day (mmscmd) of gas from RIL's KG basin, at a price of $4.20 per million metric British thermal unit (mmBtu).
The gas under this proposed pact will fuel NTPC's power units not covered under the litigated supply agreement. The Bombay High Court hearing on Wednesday will be on the disputed supply of 12 mmscmd of gas from the KG basin for NTPC's power projects in Kawas and Gandhar in Gujarat. Mr Sharma said he hoped there would be an early resolution of the RIL-NTPC court case.
The case dates back to 2005, when NTPC filed a case against RIL after the Mukesh Ambani-controlled company did not sign a GSPA after winning a supply contract through an international competitive bidding. RIL was to supply 12 mmscmd of gas at $2.34 per mmBtu.
No valid contract was concluded since NTPC insisted on inserting a clause which said RIL would bear unlimited liability in case it failed to supply gas. This is completely unreasonable, said RIL.
The Bombay HC on Monday directed RIL and Reliance Natural Resources to sign a new agreement for supply of gas within a month at a price of $2.34 per mmBtu, against the government-approved price of $4.2 per mmBtu. The NTPC case is important because the RNRL price is derived from the price discovered in the NTPC bid process.
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