NTPC was primarily reluctant to take the allotment it had violently fought for, on grounds that it may compromise its court case against RIL for non-performance of a 2004 tender.
It has now consented to purchase the fuel but wants to re-discuss the terms, a senior official said. NTPC doesn’t want to pay $0.12 per million British thermal unit marketing margin and wants changes in penalty clause to make RIL liable for defaults.
Also, NTPC wants to utilize gas at plants other than Kawas and Gandhar, which were initially recognized by the government to use 1.76 mmcmd and 0.3 mmcmd gas respectively.
NTPC’s demand for changes in the gas sale and purchase agreement (GSPA) would not be achievable as uniform agreements have been signed with around two dozen purchasers in fertilizer and power sector on terms discussed by ministries of power, fertilizer and petroleum.
