State-owned NTPC today floated a tender worth Rs 5,200 crore to buy equipment for its gas-based projects at Kawas and Gandhar in Gujarat even as it fights a legal battle with Mukesh Ambani-led Reliance Industries for the supply of gas for the expansion of these two projects.
“We have issued the tender for 1,300 MW Kawas and Gandhar each expansion projects in Gujarat,” a company official said.
The value of the tender would be around Rs 5,200 crore.
BHEL, and Larsen and Toubro are likely to bid for the tender.
NTPC is in a legal tussle with Mukesh Ambani-led RIL for supply of gas for these projects.
The dispute relates to a gas supply contract between RIL and NTPC. NTPC had taken RIL to court seeking implementation of RIL’s 2004 bid to supply it 12 MMSCMD (million standard cubic metres per day) gas at $2.34 per MMBTU (million British thermal units) for 17 years.
The thermal power utility had floated a global tender for sourcing gas at the most competitive prices for expansion of its 1,300 MW Kawas and 1,300 MW Gandhar projects in Gujarat.
RIL bid the lowest and a letter of intent was placed on RIL for supply of gas at USD 2.34 per MMBTU (prices without taxes and transportation cost) for 17 years.
While NTPC is seeking implementation of the contract whereby RIL has to supply gas to its power plants, the latter’s case is that there is no concluded contract as yet between the two parties and that only terms had been drawn.
The case is pending in the Bombay High Court.