NTPC, RIL to sign gas contract in Aug

State-owned power major National Thermal Power Corporation (NTPC) will sign a natural gas supply contract with reliance industries for its two power plants in Gujarat.

"We will sign the gas supply contract with Reliance in August," C P Jain, chairman and managing director of NTPC said today.

He added that there were no major issues before them.

When asked whether there would be any 'penalty' clause incorporated in the proposed contract for failing to meet the terms and conditions of gas supply, Jain said, "yes, there will be penalty clauses similar to other such contracts."

There had been reports that RIL would only be able to commence supply of gas to NTPC before March 2008 against previous year 2006-07.

Reacting to this, Jain said, "The orignal date for starting the gas supply was from 2008 so there is no such issue of delay."

RIL was likely to take-up its shareholders approval for the gas contract with NTPC at their AGM to be held on August 3.

Unconfirmed reports suggested that the delay in signing the contract was also due to the feud between the Ambani brothers which has now been settled amicably.