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| Gas supply case: NTPC to cross-examine RIL witnesses |
| Press Trust of India / Mumbai Jan 28, 2010, 18:27 IST |
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State-run power producer NTPC today informed the Bombay High Court it will cross examine witnesses of Mukesh Ambani-led Reliance Industries (RIL) in a dispute relating to a gas supply contract between them.
NTPC's counsel Madon made this submission before Justice Anup Mohta after RIL submitted four new documents today. NTPC's move to cross-examine RIL witness apparently indicates it would fight the legal battle vigorously in the High Court to ensure that the contract between is implemented in letter and spirit.
RIL's counsel Milind Sathe contended the company would forward additional documents filed today to NTPC by January 30 after which NTPC would inform in two days whether it was denying or admitting them.
Sathe submitted that the Supreme Court's decision in the RIL-RNRL dispute over gas supply would have a direct bearing in this case because the apex court would consider what would be effect of government policy on gas supply.
The High Court has deferred the matter to February 5 for further directions.
The dispute relates to gas supply contract between RIL and NTPC. NTPC had taken RIL to court seeking implementation of the Mukesh Ambani-run firm's 2004 bid to supply 12 mmscmd gas at $2.34 per million British thermal unit (mBtu) for 17 years.
NTPC had floated a global tender for sourcing gas at the most competitive prices for expansion of its 1,300 Mw Kawas and 1,300 Mw Gandhar projects in Gujarat. RIL bid the lowest and a letter of intent was placed on RIL for supply of gas at $2.34 per mBtu (prices without taxes and transportation cost) for 17 years.
While NTPC is seeking implementation of the contract whereby RIL has to supply gas to its power plants, the latter's case is that there is no concluded contract as yet between the two parties and that only terms had been drawn.
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