NTPC has stated that it would ink the gas sale-purchase agreement with Reliance Industries at Rs.205.38 on each mmBtu, the rate fixed by the government for its ventures other than those at Gandhar and Kawas, quoting some unsettled terms and conditions with its equivalent.
The state-led power manufacturer was previously unwilling to ink the GSPA on concerns of risking its continuing legal disagreement with Reliance Industries in the Bombay high court.
NTPC also has the jeopardy of being surrendered its right for gas assignment according to the priority list rolled out in the government’s gas utilization plan, if it is unable to ink the contract with RIL and a breakdown to stick to the contract would ensue in averting gas to other power sector clients listed in the strategy.
The government’s gas consumption policy also comprises other stake owners of KG basin gas such as present fertilizer, petrochemical, liquefied natural gas and power plants as priority gas heirs, followed by city gas allocation ventures and factories.