The government today told the Bombay High Court that the state-run NTPC would not be "allowed" to buy KG-D6 gas at less than $4.20 per million British Thermal Unit (mmBtu).
The HC is hearing a dispute between Mukesh Ambani-led Reliance Industries (RIL) and Anil Ambani's Reliance Natural Resources (RNRL) over a gas sale agreement, in which the government has intervened. Additional Solicitor General Mohan Parasaran told the court that "NTPC will not be allowed to buy gas at lower than $4.2 per mmBtu." NTPC has filed a separate suit against RIL, seeking that RIL execute the contract of gas supply.
RIL has denied that the contract with NTPC was formalised. According to the NTPC-RIL contract, the power generator is due to get the gas at $2.34 mmBtu. The affidavit filed by S M Sundaram, Under Secretary, Ministry of Petroleum and Natural Gas, said that price of KG-D6 gas, to be determined as per formula approved by EGoM, will be the same for all companies and the private companies.
Yesterday, Parasaran had told the court that minimum price of KG gas has to be $4.20 per mmBtu. The affidavit also reiterates government's stand that stay to sale of KG-D6 gas to third parties should be lifted, as "shortfall of natural gas in the country can be substantially met from the proposed gas production from KG-D6...This could include needs of PSUs and other companies in fertiliser, power and other core sectors".