NTPC not to relent on gas price; to seek Power Ministry`s help
NTPC on Saturday said it will continue to fight legally for the fuel`s contracted price from RIL and seek Power Ministry`s help.
New Delhi: 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 on Saturday 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 USD 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 USD 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 USD 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 USD 2.34 mmBtu.