New Delhi: The Power Ministry is believed to
have instructed state-run NTPC to sign a gas supply deal with
Mukesh Ambani-led RIL to lift government allotted quota, while
favouring that marketing margins be decided by the Oil
Ministry instead of the supplier.
"The GSPA (gas sales and purchase agreement) for supply
of gas from RIL to NTPC for its Kawas and Gandhar expansion
projects could be signed by the month-end," a Power Ministry
source said.
Regarding the marketing margins, the sources said that
the state-run power major has been told that these could be
decided by the Petroleum Ministry, rather than the supplier --
Reliance Industries.
Anil Ambani group, in the midst of a legal battle over
gas supply with RIL, recently raised a row saying that the
marketing margin charged by the Mukesh Ambani-led firm was
illegal.
In a recent communication made to the Power Secretary,
Reliance Industries had said that NTPC was refusing to sign
GSPA to take the government allocated 2.67 mmscmd of KG-D6 gas
for its existing plans.
This gas was allocated to NTPC by the government and is
not the subject matter of a legal case that the power PSU has
initiated against RIL over supply of 12 mmscmd over 17 years.
NTPC Chairman and Managing Director R S Sharma had
recently said that his company would not let that contract go
"at any cost."
"While RIL has been able to sign GSPA with about 40
customers in the power, fertilizer, steel, city gas and LPG
sectors to whom government made contractual allocations, the
GSPA between RIL and NTPC remains to be executed despite
discussion for over four months," RIL President (Gas) R P
Sharma wrote to Brahma.
Bureau Report
First Published: Wednesday, September 16, 2009, 18:49