ADAG welcomes govt move to secure NTPC interests

Anil Ambani Group firm RNRL on Tuesday welcomed the government's move to protect NTPC's interest on sourcing gas from Reliance Industries, saying effective legal steps will defeat the Mukesh Ambani firm's 'malafide attempts to dishonour' its commitment.

Commenting on media reports on government preparing to file an interlocutory application, RNRL said in a statement that effective legal steps should be taken 'to enforce NTPC's contractual right to receive 12 mmscmd of gas from RIL for its Kawas and Gandhar projects at a fixed price of $2.34 per mmBtu for a period of 17 years.'

This, it said, would defeat 'RIL's malafide attempts to dishonour its binding legal commitments.'

A ministerial panel headed by Finance Minister Pranab Mukherjee on Tuesday decided to clarify through a petition before the apex court that the $4.20 per mmBtu price fixed for RIL's KG-D6 gas was without prejudice to the state-run firm's case seeking fuel from RIL at $2.34 per mmBtu price committed in 2004.