NTPC likely to move SC over pricing of RIL gas

State-run power producer NTPC is likely to move the Supreme Court this week to get Reliance Industries Ltd to execute a gas supply contract, even as the Mukesh Ambani-led firm is reported to have agreed to provide the contracted gas to NTPC's three units at the government-set price.

While the government-appointed ministerial group had approved a price of $4.2 per mmBtu for RIL gas from the Krishna-Godaveri basin in the east coast, RIL had already contracted to supply 12 million cubic metres of gas per day to NTPC's Anta, Auraiya, Dadri and Faridabad projects for $2 per mmBtu.

NTPC is expected to file a special leave petition before the Supreme Court after solicitor-general Gopal Subramanium told the government that it "cannot destroy the case of NTPC or any other PSU," and advised it to find a solution to the gas supply row.

RIL, which is fighting an similar challenge from Anil Ambani group firm RNRL, is reported to have informed the petroleum ministry that it has resolved the issues related to the supply of gas from its KG-D6 facility to NTPC's plants at Anta, Auraiya, Dadri and Faridabad.

NTPC is expected to file a petition challenging last month's order of the Bombay High Court that allowed RIL to amend its written submissions relating to the price at which RIL would supply gas to two other NTPC plants at Kawas and Gandhar in Gujarat.

Also, there were differences over payment of marketing margin and end-use of gas. Reports said NTPC was not willing to pay marketing margin of $ 0.17 per unit of gas as demanded by RIL.

The government expects RIL to supply gas to the NTPC plants at the government-approved price of $4.2 per mmBtu and the state-run power utility is entitled to 2.7 million metric standard cubic metres per day (mmscmd) under the gas utilisation policy of the government.