RIL-NTPC: Resolution in sight?
27 September 2006
a two-year long wait, NTPC may finally get gas from
Reliance, but at a higher cost, reports CNBC-TV18. However
even if Reliance and NTPC kiss and make up, that doesn't
clear the deck for the controversial RIL-RNRL gas deal.
gas deal between NTPC and RIL was finalised in 2004
but agreement could not be reached on key issues. Subsequently,
NTPC took RIL to court.
now sources say an understanding has been reached on
three contentious issues. Reliance Industries will not
have unlimited liability for non-delivery of gas.
say that both companies are working out the liability
limit. NTPC is also likely to get the first right of
refusal and the two companies will also relook the deal
price. At $3.18 per MMBTU of gas, it is much lower than
the market price of gas today, which hovers at close
December, the prime minister's energy coordination committee
asked the cabinet secretary to help resolve the contentious
issues between the two parties. Sources say that the
matter is now with the director general of hydrocarbons.
a resolution between RIL-NTPC is unlikely to have any
another high profile gas deal- the one between RIL and
RNRL. Oil ministry officials say that unlike NTPC-RIL,
there has been no competitive bidding in RIL-RNRL.