27-11-24
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Anil Ambani group welcomes government stand on gas for NTPC

Category :India Sub Category :National,Business
2009-08-27 00:00:00
   Views : 528

New Delhi, Aug 27 - The Reliance Anil Dhirubhai Ambani Group Thursday welcomed the government stand to protect the interests of state-run power utility NTPC in its legal dispute with Reliance Industries over gas supplies from the Krishna-Godavari basin.

At the same time, the petroleum ministry has been requested to maintain the same uniform approach to another related legal dispute that involves the Anil Ambani group's Reliance Natural Resources and Mukesh Ambani-led Reliance Industries.

Both NTPC and Reliance Natural Resources have sought uninterrupted gas supplies from Reliance Industries at $2.34 per unit for 17 years. They also maintain that valid pacts exist with the contractor regarding this.

In a letter to Petroleum Secretary R.S. Pandey, the Anil Ambani group expressed surprise that Reliance Industries once again sought to justify the high capital cost of nearly $9 billion to develop the Krishna-Godavari fields.

A surprise in equal measure was also expressed in the letter that the petroleum ministry defended the apparently inflated capital expenditure in a short span of just a day even though concerns were expressed over the credentials of people who validated the cost.

The letter, written by group president A.N. Sethuraman, also went on to state that the prices of natural gas had crashed 80 percent in the global markets from $13.58 per unit in July last year to $2.73 per unit as on Aug 24.

'As against this dramatic collapse in prices globally, the price consumers are paying for the Reliance Industries gas during the same period has moved in the opposite direction, and actually gone up by over 20 percent in rupee terms.'

The letter said this was primarily because the gas pricing in India is set in dollar rates, resulting in an unjustified annual increase at peak production of over Rs.




Author :Indo Asian News Service



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