Press trust of India / Mumbai Sep 27, 2009, 00:56 IST
State-owned RCF has demanded price parity with NTPC and Anil Ambani Group firm RNRL for the gas supplied by Mukesh Ambani’s RIL, saying it would improve the profitability of the company by 20 per cent.
RNRL and NTPC are fighting legal cases separately for obtaining gas at $2.34 per mmBtu, lower than the government approved rate of $4.34 per mmBtu from Reliance Industries’ K-G D6 fields.
“If that price ($2.34) is at arm’s length basis, then it has to be extended to fertiliser companies as well,” RCF Chairman and Managing Director U S Jha said. Jha said that if RCF gets gas at a price of $2.34 per mmBtu, then the company’s profitability can rise by 20 per cent over the previous financial year.
“We are looking forward to the judgement in this case because it will have a direct bearing on our physical and financial performance,” Jha said.
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