Friday, June 26, 2009

Reliance Industries is ready to sign agreement with NTPC

Reliance Industries agreed to supply gas to state run NTPC, the largest power generator of India. Reliance is ready to sign sales agreements with NTPC under which, the company will supply gas to NTPC from its Bay of Bengal KG-D6 field. Reliance sent letters to NTPC on June 26, 2009, in which it said that it was ready to sign supply agreement and supply gas for the Anta, Dadri, Faridabad plants of NTPC as per “government allocation priorities.” Reuters reports:

The government has directed Reliance to supply the gas to priority sectors such as fertilisers and power.

NTPC Chairman and Managing Director R. S. Sharma said this week the government had allocated 2.6 million metric standard cubic metres a day (mmscmd) of gas to NTPC at $4.2 per million metric British thermal unit (mmBtu) under the priority scheme.

However, NTPC refused to sign a purchase agreement because it believes that the agreement would compromise NTPC’s court case against RIL for failure to fulfill its 2004 tender.

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