NTPC seeks legal opinion on gas deal

  • 01/05/2009

  • Asian Age (New Delhi)

THE STATE-OWNED power major NTPC is seeking legal opinion on whether to ink deal with RIL for KG basin gas at the government-approved price of $4.20 per mmbtu (million Bristish thermal unit)for its projects except those on which it is in legal dispute with the Mukesh Ambani group over feedstock pricing. At present, both sides are in litigation at the Bombay High Court where NTPC's plea is that it should get gas for its Kawas and Gandhar expansion power projects, for which RIL was awarded a contract after it bid lowest at $2.6 per mmbtu to supply 12 million standard cubic metres per (mmscmd). NTPC has been maintaining that the contract was concluded and Reliance Industries is bound to supply gas at the contracted price.