Petroleum Ministry to support NTPC in legal battle against RIL

Posted By: Staff
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New Delhi, Aug 19 (ANI): Union Petroleum Ministry on Wednesday assured its support to National Thermal Power Corporation (NTPC) in the legal battle to get natural gas from Mukesh Ambani's Reliance Industries Limited (RIL) as per the rates decided in 2004.

The ministry said it would not allow the interest of the NTPC to be compromised.

According to sources, Petroleum Secretary R. S. Pandey conveyed the decision to Power Secretary H. S. Brahma and NTPC Chairman R. S. Sharma.

NTPC has drawn RIL to court seeking supply of 12- million metric standard cubic meters (mmscmd) gas for its Kawas and Gandhar projects as per the rates quoted in the 2004 tender that is USD 2.34 per million British Thermal Unit (mmBtu).

The NTPC is also thinking to claim damages from the RIL for the difference between government approved price of USD 4.2 per mmBtu and the one committed in the tender, sources said.

Earlier the Attorney General and the Solicitor General opined that the RIL could not be allowed to move about from the commitment made through a global bid and the NTPC could take the matter to court. (ANI)

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