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NTPC may move SC on RIL gas row this week

State-run power producer NTPC is expected to move the Supreme Court this week to get Reliance Industries to execute a contract for gas supply.



New Delhi: State-run power producer NTPC is
expected to move the Supreme Court this week to get Reliance
Industries to execute a contract for gas supply, even as the
Mukesh Ambani-run firm is challenging an identical prayer of
Anil Ambani group firm RNRL.

NTPC will file a Special Leave Petition before the apex
court this week, a source familiar with the development said.

Solicitor General Gopal Subramanium is believed to have
advised the government to find a solution to the gas supply
row, saying "government cannot destroy the case of NTPC or any
other PSU."

A ministerial group had approved USD 4.2 per mmBtu as the
value of gas from RIL`s KG-D6 fields, but before that the
company had won a contract to supply 12 million cubic metres
of gas per day to NTPC`s Kawas and Gandhar projects with a bid
of USD 2.34 per mmBtu in 2004.

The government has separately filed a petition in the
Ambani brothers` gas dispute, saying it alone had the right to
approve gas price.

To buttress its argument in its legal battle with NTPC
before the Bombay High Court, RIL had quoted the the
ministerial group`s decision saying official nod was needed
for pricing gas.

The Ambani row pertains to Anil Ambani group firm RNRL
demanding gas from RIL at a price of USD 2.34 per mmBtu - the
price discovered through the NTPC bid - but here-again RIL has
been maintaining that the price needs government approval.

Bureau Report

From Zee News

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