Gas at $2.34 to help users save Rs 32,000 cr in bills: NTPC

New Delhi, Sep 10 (PTI) State-run power utility NTPC
Thursday accused Mukesh Ambani-led 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 USD 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, "RIL
instead of honouring the contract and executing the GSPA,
unilaterally modified the GSPA in December 2005 and signed and
forwarded the same to NTPC for counter-signing."
The state-run firm said a contract for supply of gas from
KG-D6 at a delivered price of USD 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 said it had later agreed to take KG-D6 gas for plants
other than Kawas and Gandhar at government-approved rate of
USD 4.2 per mmBtu so as not to prejudice its 2004 tender.
Power Secretary H S Brahma earlier Thursday said that NTPC
would by this month-end sign GSPA for buying 2.67 mmscmd of
gas from RIL for its Anta, Dadri and Faridabad plants. (MORE)
PTI