Mumbai: State-owned Rashtriya Chemicals and Fertilisers has demanded price parity with NTPC and Anil Ambani Group firm RNRL for the gas supplied by Mukesh Ambani's RIL, saying it would improve the profitability of the company by 20 percent.
RNRL and NTPC are fighting legal cases separately for obtaining gas at USD 2.34 per mmBtu, lower than the government approved rate of USD 4.34 per mmBtu from Reliance Industries' K-G D6 fields.
"If that price (USD 2.34) is at arm's length basis, then it has to be extended to fertiliser companies as well," RCF Chairman and Managing Director U S Jha said.
Jha said that if RCF gets gas at a price of USD 2.34 per mmBtu, then the company's profitability can rise by 20 percent over the previous fiscal.
"We are looking forward to the judgement in this case because it will have a direct bearing on our physical and financial performance," Jha said.
RCF has received a total of 2.7 million standard cubic metres (mmscmd) of gas from Reliance for its two plants at Trombay and Thal, since May this year.
On divestment in RCF, he said it would certainly happen but declined to comment on the quantum of the stake to be divested or the time-frame for it.
Bureau Report
First Published: Saturday, September 26, 2009, 13:05