RIL's bid price for NTPC not valid: Deora

Petroleum Minister Murli Deora said that State-owned NTPC may not get natural gas at the price committed by Mukesh Ambani-led RIL


Replying to a Calling Attention motion on availability of gas to power sector in the Rajya Sabha, Deora said the RIL had not sought approval for the USD 2.34 per million British thermal unit price quoted by RIL 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 said.

NTPC had in 2006 dragged RIL to the Bombay High Court seeking delivery of 12 million cubic meters per day of gas at the 2004 tender price which RIL says cannot be performed as the Gas Sales and Purchase Agreement was not signed.

Anil Ambani, fighting a bitter battle with elder brother Mukesh Ambani for gas, is seeking the price of USD 2.34 on the basis of RIL's commitment to NTPC.

RIL recently amended its plea in the Bombay High Court saying the its price would be frustrated due to the Government stand that the price has to be first approved by it.

"It must also be noted that the contractor (RIL) made no proposal on price formula for deriving the pricing of gas for supply of gas to NTPC, which is required under PSC," Deora said. "This process not being undertaken, so, EGoM approved price (of USD 4.2 per mmBtu) is applicable."
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