Mukesh Ambani-led RIL today hit at state owned NTPC for "misleading" the government by saying that it was not aware of the condition that the price of gas to be supplied to it was subject to Centre's approval.

"...NTPC's letter to the government at this stage is clearly an afterthought intended to mislead the government," RIL's Petroleum Business chief P M S Prasad told Petroleum Secretary R S Pandey in a communication amid an ongoing battle with the power PSU over gas supply on a price bid in 2004.

The letter comes days after the government made it clear that the empowered Group of Ministers approved price of $4.2 per mmBtu for RIL's KG basin gas was without prejudice to the ongoing legal battle, where NTPC is seeking the fuel at a committed price of $2.34 per mmBtu.

Prasad said "the fact is that NTPC was not only aware of the requirement of gas price approval under the Production Sharing Contract but had in fact insisted upon and agreed to its inclusion as a condition precedent to the gas supply agreement."

He was referring to the reports that NTPC Chairman R S Sharma had written to the government that "RIL did not convey to NTPC that the price of gas quoted by RIL in the international competitive bidding was subject to approval of the government under the PSC."

Source: PTI more information, please visit:

http://oilandgasindia.blogspot.com/