NTPC to ink gas pact with RIL for projects in North India

NEW DELHI: State-owned NTPC is likely to sign gas sales and purchase agreement (GSPA) with Reliance Industries (RIL) for the supply of two mmscmd of gas needed for its North-based power projects such as Anta, Auraiya, Faridabad and Dadri in December.

The country���s largest power producer would, however, stay clear in entering into any gas deal with RIL for its Gujarat based Kawas and Gandhar projects as both companies are engaged in a legal battle in Bombay High Court over gas supply for expansion projects of the two gas-based power plants.

"The empowered group of ministers (EGoM), at its meeting on Tuesday, has permitted NTPC to take balance gas from its total allocation made earlier for power projects other than Kawas and Gandhar plants. This has cleared the way for NTPC to sign GSPA for its full quota of allocation," said an official in the power ministry requesting anonymity.

For Kawas and Gandhar plants, KG gas will be swapped with APM/PMT gas under administered price mechanism (APM) coming from Panna-Mukta-Tapti (PMT) fields that is available to power plants at much lower price.