HC adjourns RIL, NTPC hearing

The Bombay High Court has adjourned the final hearing on the National Thermal Power Company (NTPC) and the Mukesh Ambani flagship, Reliance Industries (RIL), dispute over the supply of gas to NTPC's 2600 mw Kawas and Gandhar power projects in Gujarat. The hearing will now take place on July 17.

The legal battle between the two energy giants has been continuing for last five months with the latter not signing the gas sale and purchase agreement (GSPA) to supply gas for two projects.

RIL, which had won the contract from NTPC under competitive bidding in 2004, is expected to supply 13 trillion British thermal units of gas each year to NTPC for 17 years from 2007. However, RIL is seeking changes in the "uncapped liability" clause in the GSPA.

"The clause has made our project non bankable," the company had said during one of the hearings and expressed its inability to execute the contract unless alterations were made to the clause.

NTPC, requesting the HC to grant an interim relief, had asked for "blocking" RIL's gas stocks and restrain it from indulging in any gas supply contract with any other party.