Status quo in NTPC-RIL case, hearing on Jan 30

National Thermal Power Corporation (NTPC) and Reliance Industries Ltd (RIL) did not achieve any breakthrough in their dispute over gas sales and purchase agreement (GSPA) in keeping with a suggestion of the judiciary, even as NTPC's petition against RIL for specific performance of contract was adjourned till 30 January next year.

The petition was adjourned by justice S F Vajifdar as RIL sought time to file reply to the petition. Accordingly, the ad-interim relief prayed for by NTPC "� seeking an order to restrain RIL from entering into contract with any other party "� was not granted.

Both the entities today tried to work out modalities but could not come to any conclusion and later during the day met the judge in his chamber following which he adjourned the hearing.

RIL had yesterday disclosed concern over the "uncapped liability" clause in the GSPA and said it has made the contract "unbankable" for the company.

RIL, which has sought time to file its reply, has been asked to file its affidavit on 16 January, a week after the courts resume Christmas vacations.

NTPC has been allowed to file a rejoinder on 27 January and the next hearing for ad-interim relief would take place on 30 January.

Hearing the arguments advanced by both the sides, justice Vajifdar yesterday said "this is a very delicate matter and both parties should arrive at a solution by talking to each other and attempt to solve their differences."

Country's largest power producer NTPC and RIL are at loggerheads since last month over the issue of the latter not signing the GSPA for supply of gas at $2.97 per million British Thermal Units to state-owned power major's upcoming 2,600 mw projects in Kawas and Gandhar in Gujarat.

NTPC, which has demanded for "blocking RIL's gas stocks" yesterday urged the court to direct RIL not to enter into any gas supply contract with any other party.

However, countering this argument RIL had said its contract with any other party would not hurt the prospects of NTPC's upcoming projects as besides the gas supply contract between the two, NTPC would have option of using the gas generated from many upcoming gas projects in the country.

Ril had won NTPC's gas supply contract in June 2004 under which from 2007 it would supply gas for 17 years to NTPC.

However, RIL has expressed concern over increase in the gas prices at the international level.

Besides, demanding "blocking of RIL's gas stocks" NTCP had also accused the company of "lack of seriousness" to ink the agreement and said the abeyance of signing of GSPA would result in a shortfall for its targeted capacity-addition during the 10th plan.