Projects Today reported that NTPC is expected to sign a gas sales and purchase agreement with Reliance Industries Limited soon, for supplies to its gas based power plants. NTPC is reportedly going to buy the RIL KG basis gas at USD 4.2 per million metric British thermal unit.
However, NTPC and RIL are currently locked in a legal dispute over implementation of a gas supply agreement between them in 2005, under which Reliance was to supply 12 million metric standard cubic meters a day at USD 2.34 per million metric British thermal units for the Kawas and Gandhar projects in Gujarat.
According to sources, the government had allocated 2.67 million metric standard cubic meters a day for projects of NTPC, other than the 2 projects for which the legal battle between NTPC and RIL was going on.
