It is reported that state run NTPC will not suffer INR 300 billion loss if it was to get natural gas at prices higher than those committed by Reliance Industries five years ago.
NTPC had taken RIL to court seeking implementation of the Mukesh Ambani run firm’s 2004 bid to supply 12 mmscmd of gas at USD 2.34 per mmBtu for 17 years.
Mr Bharatsinh Solanki minister of state for power in a written reply to Rajya Sabha said that “There is no loss to NTPC on account of fuel cost as the fuel cost is a pass through to beneficiaries (customers).”
He said that “NTPC’s tariff is determined by Central Electricity Regulatory Commission. As per the regulation for fixing the tariff under the Electricity Act 2003, the fuel cost is a pass through to beneficiary states/union territories who in turn realize this from consumers.”
M V Mysura Reddy had asked if RIL’s dishonoring of the contract would cause a loss of INR 300 billion to NTPC.
Mr Solanki said that “However, to protect the long term interests of its customers, NTPC always strives to source fuel at the most competitive price.”
He said the fuel cost at the delivered price of gas of USD 3.30 per mmBtu works out to INR 1.07 per unit while the same at the delivered cost of USD 6.67 per mmBtu comes to INR 2.17 per unit.
(Sourced from http://www.steelguru.com)
Sunday, December 20, 2009
NTPC not to suffer INR 300 billion loss – Government
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