SC to hear NTPC-RIL gas dispute tomorrow

The Supreme Court will hear tomorrow power PSU NTPC's petition against Mukesh Ambani-led Reliance Industries (RIL) group for seeking gas at a contractual price.

NTPC had moved the Supreme Court challenging the Bombay High Court's decision that allowed RIL to amend its petition on the gas dispute saying the government's policy would render the deal with power PSU infractuous.

A division bench of the the Bombay High Court had allowed amendment in the petition wherein RIL had prayed that the government's policy on pricing of gas would frustrate its contract with NTPC.

The power PSU had sought 12 mmscmd gas from RIL, which had emerged winner in an international competitive bid quoting a price of $2.34 per million British thermal unit (mBtu).

With NTPC's appeal, the apex court may also hear Anil Ambani Group firm Reliance Natural Resources' (RNRL) applications seeking to make NTPC as a party in its ongoing dispute with RIL and also to join as a party to the special leave petition filed by NTPC.

NTPC had said in its special leave petition that the high court failed to appreciate that the amendment substantially cited the central government and its decision to be the chief cause of inability to perform the general sales & purchase agreement.

It may be recalled that RNRL is also fighting a case in the apex court against RIL to get gas at $2.34 per mBtu, a price lower than the government approved rate of $4.2 per mBtu.

The government has also moved a petition on the RIL-RNRL issue and the apex court has decided to commence hearing on the matter on October 20.