No justification for NTPC’s Rs 32K cr savings talk: RIL

The gas battle continues to rage. Reliance has reacted to National Thermal Power Corporation’s (NTPC) charge that NTPC will save Rs 32,000 crore if Mukesh Ambani led Reliance Industries Ltd (RIL) delivers gas at USD 2.34 per mmbtu. RIL’s sources have very categorically said that there is no justification for NTPC to talk about the savings of Rs 32,000 crore when it is buying gas at USD 11 per mmbtu when it can get gas at USD 4.2 per mmbtu from RIL’s KG D6 basin.

The war of words continues for Reliance. This time it is against NTPC which came out with a statement that it stands to gain or save Rs 32,000 crore. RIL’s sources have very categorically said that there is no justification for NTPC to talk about the savings of Rs 32,000 crore when it is buying gas at USD 11 per mmbtu when it can get gas at USD 4.2 per mmbtu from RIL’s KG D6 basin.

It says that RIL has agreed to sign gas sales and purchase agreement (GSPA) without prejudice to the court case which is in Bombay High Court (HC) but NTPC has refused to sign the GSPA despite the fact that RIL has given an written undertaking that it will be without prejudice to the case.

It also says that USD 2.34 per mmbtu is subjudice and NTPC cannot be asking for gas at that price. It says that NTPC went to court without signing any agreement and so this price is subject to the final settlement in the Bombay High Court. It says that this price of USD 2.34 per mmbtu is also subject to the government approval because that is as per the Production Sharing Contract (PSC) which RIL has to follow because of the agreement which it has with the government of India.

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