Press Trust Of India / New Delhi Aug 09, 2009, 00:30 IST
In the face of Oil Minister’s comment that RIL gas to NTPC could be given at a government-approved price, the state-owned power major today said it will continue to fight legally for the fuel’s contracted price and seek Power Ministry’s help.
“NTPC will continue with its stand on price of $2.34 per mmBtu (as committed by Mukesh Ambani-led RIL) and will take support from (the) Ministry of Power,” a top company official said on condition of anonymity.
Petroleum Minister Murli Deora had told the Rajya Sabha on Thursday that RIL had not sought approval for the $2.34 per million metric British thermal unit (mmBtu) price quoted by it in NTPC’s 2004 tender.
“Since, no approval had been sought by RIL as required under the Production Sharing Contract, the $4.20 per mmBtu price approved in 2007 will be applicable,” he had said.
However, the Petroleum Ministry yesterday clarified its stand saying it had not made up its mind regarding the price at which gas from Reliance Industries should be supplied at.
“It was not the intention of the Petroleum Minister to make a final statement on the issue, since the matter is subjudice,” said S Sunderasan, additional secretary at the Ministry of Petroleum and Natural Gas.
NTPC had slapped a case against RIL three years ago for getting 12 million standard cubic metre of gas a day for its proposed power projects at a price of $2.34 mmBtu.
Recently, RIL got the Bombay High Court’s approval for amending its petition in this case, saying that the quoted price of $2.34 mmBtu would be frustrated in the absence of government’s approval.
Reg gas supply to NTPC by RIL.
The hon. Minister's statement that since RIL has not sought for the permission of the Government under the production sharing contract the $4.2mm bitu price appproved in 2007 will be applicable, as reported in the abovementioned news, can be interpreed in many a manner. Actually the onus of getting approval immediatedly after executing the agreeement wih third party by RIL is solely rest with them and for the lapse on the part of RIL , NTPC (a Govt of India undertaking)cannot be a party to the higher price than that of the agreed price. If it happens it would be at the expense the people of India and should be allowed.(ofcourse the matter is under the consideration of Apex Court, which we keep in high esteem and honour, and the comments are with high respect to the hieghest judiciary of our country.)
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