'No gas deal between NTPC & RIL'
The Centre on Thursday informed the Bombay High Court that NTPC has not signed any contract with RIL.
By ET Bureau |
MUMBAI: The Centre on Thursday informed the Bombay High Court that NTPC has not signed any contract with RIL. While representing the government on the RNRL-RIL case (where the government is a party), the government���s counsel said the contract between NTPC and RIL has not been formalised into an agreement.
This contradicts the government-owned power company���s stand in its legal tussle with RIL. NTPC had moved the Bombay High Court three years ago, alleging violation of gas supply agreement by RIL. RIL had a contract to supply gas of 12 million metric standard cubic metres per day (mmscmd) in 2004 at $2.34 per mmbtu for 17 years. But the contract is now stuck in a legal row over the issue of cap on liability in case of breach of contract.
The outcome of the NTPC-RIL case is important for RNRL as it is supposed to get 12 mmscmd of additional gas if RIL-NTPC contract fails. The RNRL counsels reacted sharply to the statement of the government���s counsel TS Doabia. Mr Jethmalani said the government cannot say one thing in a case and something else in another. ���This shows that the government is corrupt,��� he added.
Meanwhile, RNRL has sought the permission of the Bombay High Court to trade gas till it���s proposed 7,800 mega watt power project in Dadri comes up. ���RNRL could not be ready with its plants for lack of bankable gas sales purchase agreement with RIL,��� Mr Jethmalani said.
The RNRL counsel also argued that the signing of agreement in January 2006 between RIL and the resulting companies of the demerger, including RNRL, was a ���criminal breach of trust on the part of Mukesh Ambani, and liable for prosecution under the Indian Penal Code.���
This contradicts the government-owned power company���s stand in its legal tussle with RIL. NTPC had moved the Bombay High Court three years ago, alleging violation of gas supply agreement by RIL. RIL had a contract to supply gas of 12 million metric standard cubic metres per day (mmscmd) in 2004 at $2.34 per mmbtu for 17 years. But the contract is now stuck in a legal row over the issue of cap on liability in case of breach of contract.
The outcome of the NTPC-RIL case is important for RNRL as it is supposed to get 12 mmscmd of additional gas if RIL-NTPC contract fails. The RNRL counsels reacted sharply to the statement of the government���s counsel TS Doabia. Mr Jethmalani said the government cannot say one thing in a case and something else in another. ���This shows that the government is corrupt,��� he added.
Meanwhile, RNRL has sought the permission of the Bombay High Court to trade gas till it���s proposed 7,800 mega watt power project in Dadri comes up. ���RNRL could not be ready with its plants for lack of bankable gas sales purchase agreement with RIL,��� Mr Jethmalani said.
The RNRL counsel also argued that the signing of agreement in January 2006 between RIL and the resulting companies of the demerger, including RNRL, was a ���criminal breach of trust on the part of Mukesh Ambani, and liable for prosecution under the Indian Penal Code.���
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