Thaindian News

Mumbai, Sep 4 (IANS) State-run power utility NTPC Friday said it was “committed to drawing the allocated gas” from the Krishna-Godavari hydrocarbon basin for projects in the national capital region that includes Delhi, even though it was fighting a legal battle with the contractor, Reliance Industries Ltd (RIL).
“NTPC is committed to drawing the allocated gas for its national capital region gas-based power stations at Anta, Dadri and Faridabad, without prejudice to its rights and contentions in the ongoing suit between NTPC and RIL,” said the company in a statement to the Bombay Stock Exchange (BSE).

NTPC plans to use 2.67 million units of gas for the NCR plants.

The power utility is fighting a legal battle with the Mukesh Ambani-headed Reliance Industries for gas supplies at $2.34 per unit for 17 years based on a tender floated a few years ago.

The state-run company plans to increase capacity of its gas-based power plants at Kawas and Gandhar expansion projects.

“Various issues for signing of gas supply and purchase agreement with Reliance Industries have been resolved, except one for which NTPC intimated its position to RIL and the same was not acceptable to them,” the company said referring to the case which is pending at the Bombay High Court.

The company, however, declined to comment on a recent RIL allegation that it had signed the contract to sell gas at $2.34 per unit but it was NTPC that did not reciprocate.

“Entire facts of the case are before the Honourable Bombay High Court and the matter is subjudice. Hence, NTPC does not want to comment on this,” it said in the regulatory statement.