he ongoing legal battle between NTPC, the country’s largest power generating company, and Reliance Industries
Ltd (RIL), is now likely to
RIL
Reliance Industries' KG-D6 facility
World's top oil exporting countries
World's top 10 oil producers
World's largest refining companies
shift to the Supreme court with NTPC challenging RIL’s decision to amend the written submission in light of the EGOM decision.
NTPC has petitioned against RIL’s latest stand in the division bench at the Bombay High Court alleging that RIL’s change in stance at this juncture is a “delaying tactic” to avoid an early solution. This comes even as a similar battle over gas supplies between RIL and RNRL enters the final phase in the Supreme Court and is due for a hearing on July 20.
The NTPC vs RIL case has serious implications for the RIL vs RNRL case as gas supplies to RNRL were to be based on the same terms as NTPC’s gas contract with RIL. RIL had bid a price of $2.34 per mmbtu (million British Thermal unit) for supplying 12 million metric standard cubic metre of gas to NTPC’s Gandhar and Kawas plants (2600 mw) in Uttar Pradesh. The Bombay High Court order directing RIL to sell 28 mmscmd of gas to RNRL at $2.34 per mmbtu was seen to come as a boost to the NTPC case as the ruling had upheld the price of $2.34 even though the government had approved a price $4.2 for other fertilizer and power consumers in 2008.
The petition by NTPC that has been accepted by the division bench and a decision is expected shortly. Senior NTPC officials, ET spoke to, confirmed that the company is now looking for an early solution and will escalate the matter to the apex court if the division bench rules against their petition.
RIL on its part has held that the company needs to take into account the government's petition based on the EGOM decision. "We think it is important to take into account the government position on price and allocation as it has implications on this case as well," a RIL official said.
“RIL’s decision to amend its petition just before the cross examination were to begin raises questions about the intent behind the move,” a senior NTPC official said. The case has been going on almost three years, almost in parallel along with the RIL vs RNRL case and any decision on either of the case is expected to have an implication for the other.
