NTPC accuses RIL of changing contract

NEW DELHI: Government-owned power generation company NTPC on Thursday accused Mukesh Ambani-controlled RIL of seeking unilateral changes in a 2004 gas supply contract and said that gas at the contracted price would help consumers save Rs 32,000 crore. ���The $2.34 per mmbtu price that RIL committed in NTPC���s tender would result in lower electricity tariff of Rs 1.07 per unit and savings of around Rs 32,000 crore for consumers over 17 years,��� NTPC said in a filing to stock exchanges.

Responding to media reports that RIL had signed a gas sales and purchase agreement (GSPA) and that it was only the state-run firm which had not reciprocated, NTPC said: ������Instead of honouring the contract and executing the GSPA, RIL unilaterally modified the GSPA in December 2005 and signed and forwarded the same to NTPC for counter-signing.���

NTPC said a contract for supply of gas from KG-D6 at a delivered price of $3.3 per mmBtu for 17 years ������came into existence (when RIL accepted the Letter of Intent) with draft GSPA already finalised during the bidding process.���

NTPC claimed that a draft GSPA was finalised before RIL���s $2.34 per mmBtu price bid was accepted and said agreement had a clause for liability in the event of default in supply. RIL, however, made ������unilateral changes in the GSPA before forwarding it to NTPC,��� the PSU said.

������These unilateral changes were unacceptable to NTPC and were unfavourable to customers. NTPC in these circumstances was constrained to file a suit against RIL (in December 2005) for specific performance in the Bombay High Court,��� the state-run power company said in the filing.

However, a source in RIL said the $2.34/mmbtu matter is subjudice because NTPC did not sign the deal at this price and went to court. NTPC cannot demand gas at $2.34/mmbtu till the case is settled and the price is approved by the government.