Mukesh Ambani-led Reliance Industries (RIL) today told the Bombay High Court that it can easily resolve a gas supply dispute with state-run power producer NTPC in view sufficient gas reserves with the company.
"I and Kadam (NTPC lawyer) can solve the dispute within 15 minutes," RIL lawyer Harish Salve said during the arguments in RIL-RNRL case.
Both RIL-RNRL and RIL-NTPC cases pertain to agreements on supplying gas from KG basin. NTPC has the first right on RIL's KG basin gas, but RIL says it has not concluded the contract.
The bone of contention is the cap on the RIL's liability in case it fails to supply gas for reasons beyond its control.
While RIL wants a cap on this liability, NTPC is opposed to it, saying that the contract is already concluded and RIL cannot add any new clause.
During the RIL-RNRL hearing, Salve said that cap on liability was an issue three years ago, when exploration in KG basin was in the initial stages.
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"It worried us then, but now we have more gas reserves so we are not worried about the cap issue now," Salve said.
Salve said that NTPC's need -- under the contract -- was small (NTPC is due to get 12 mmscmd while RNRL is to get 28 mmscmd of gas), so it was easier to settle case with NTPC.
However, state advocate general Ravi Kadam, who is representing NTPC, said he could not comment on Salve's statement. "Litigation is going on..I can't say anything at this stage," Kadam told reporters outside the court.
Kadam also said that NTPC wants gas at $2.34 -- though government had recently told High Court (in RNRL case) that KG gas price can not be less than $4.20. "Our stand has not changed," Kadam said.