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Sunday, Sep 06, 2009
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Business Daily from THE HINDU group of publications Sunday, Sep 06, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Power Corporate - Corporate Disputes Industry & Economy - Petroleum
Our Bureau New Delhi, Sept. 5 NTPC on Saturday moved the Supreme Court against the Bombay High Court decision to allow the Mukesh Ambani-led Reliance Industries Ltd (RIL) to amend its plea in the Krishna Godavari D6 block gas supply row. The High Court had on July 30 allowed RIL to include in its petition an affidavit filed by the Government in the Supreme Court in the dispute between the Ambani brothers (RIL-RNRL case) on KG gas. The Government had in its application said that pricing and utilisation of gas rested solely with it. Significantly, NTPC’s special leave petition (SLP) follows the Government also clarifying before the apex court in the dispute that the Empowered Group of Ministers (EGoM)-approved gas pricing policy to fix the price at $4.2 a million British thermal units (mBtu) was without prejudice to NTPC’s case against RIL. NTPC contentionIn its SLP, NTPC contended that RIL’s original statement in the Bombay High Court was filed after the EGoM’s September 12, 2007 decision on the gas pricing. Therefore, the apex court should not permit the amendment as it was an “afterthought” and a new contention that was made following the commencement of the trial with an intention to cause delay, sources in the NTPC legal team told Business Line. The position taken by RIL that only the Government can decide on the price belies the logic of RIL participating in the NTPC tender process in the first place, they said. “How did RIL offer any price in the first instance? Going by RIL’s argument that they cannot sell gas at a price other than what the Government fixes, the bid price of $2.34 per mBtu (for supply of gas to the power major’s two projects in Gujarat) itself is a contradiction,” a source involved in the finalisation of NTPC’s petition said, pointing to the crux of the power utility’s contention. RIL commitmentNTPC had moved the Bombay High Court seeking that RIL should meet its commitment of gas supply of 12 million standard cubic meters a day to the power major. Though RIL had won an international competitive bid by quoting $2.34 per mBtu to supply gas to NTPC, the company claims that it did not formally sign the contract with the power company as there were certain unresolved issues such as capping the unlimited liability provisions in the draft agreement. Gas dispute will not change purchase pact for NCR units: NTPC RIL wants NTPC to settle gas sales and purchase pact Gas row: Govt’s interest only on allocation, not Ambanis’ pact Ministry seeks new EGoM for further allocation of D6 gas NTPC move on gas row to hinge on Ministerial panel decision More Stories on : Power | Corporate Disputes | Petroleum | Reliance Industries Ltd | NTPC Ltd
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