NTPC not to pay more for Reliance gas

NEW DELHI: State-run power utility NTPC has ruled out paying more for natural gas it plans to buy from Reliance Industries’ Bay of Bengal gas field, saying there cannot be any out-of-court settlement and Reliance will have to supply gas at the price it quoted in the 2004 tender.

“No one at NTPC can do that (increase the price). Reliance will have to honour price it quoted for our tender for sourcing gas,” NTPC CMD T Sankaralingam said.

Reliance had in 2004 won an international tender to supply 12 million standard cubic metres per day of natural gas to NTPC at a delivered price of $2.97 per MBTU.