The Hindu Business Line : If RIL backtracks on pact with NTPC, Govt may review KG Basin pact

THE Centre may consider reviewing the agreement signed with Reliance Industries Ltd (RIL) for production-sharing of gas from the KG Basin, if the company backtracks on its original pact for supplying gas to state-owned National Thermal Power Corporation's (NTPC) Kawas and Gandhar stations.

This comes in the wake of several new issues being raised by RIL last month as a precondition for signing the final gas purchase agreement with NTPC, the original pact for which was signed last year. The Government officials said the Power Ministry has taken up the issue with the Petroleum Ministry and that talks are on between the two Ministries.

"We have taken the matter up with the Petroleum Ministry and the Government will consider taking action against Reliance Industries Ltd, if it backtracks on the pact signed with NTPC for gas supply to Kawas and Gandhar," a Power Ministry official said.

RIL was short-listed by NTPC through an international competitive bidding process to supply 3 million tonnes (mt) of gas annually at $2.97 per million British thermal units (BTU) for 17 years.

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