Reliance Industries has blamed NTPC in a latest development that even with a joint agreement it had inked a deal in December 2005 to supply natural gas to NTPC at $2.34 per mBtu for 17 years, the state-led power producer never shared the contract arrangement.
RIL indicated the GSPA with NTPC in December 2005, where it devoted to sell gas from its KG-D6 mines at a delivered cost of $3.18 per mBtu at its Gandhar and Kawas factories in Gujarat where the state-led company was supposed to return 2 inked copies of it, which never occurred due to NTPC’s unwillingness.
Reportedly, RIL stated that NTPC did not ink the GSPA, instead filed a suit in opposition to Reliance Industries in the Bombay High Court. RIL had no alternative but to cancel the proposal contained in the inked GSPA sent to NTPC with the issue in court.
NTPC wants RIL to carry out the provision of gas at the cost fixed in the 2004 proposal of $2.34 per mBtu. However, the RIL insists that the cost needs the consent of the government, which a year ago sanctioned $4.2 per mBtu as the cost of gas.