Amar Singh seeks nod for Reliance Industries gas price
Samajwadi Party leader Amar Singh has asked Empowered Group of Ministers headed by External Affairs Minister Pranab Mukherjee to immediately approve the gas price Reliance Industries had bid in a 2004 NTPC tender.?

Singh, writing as a member of the Committee on Public Undertakings, said Reliance had bid to supply 12 million cubic meters per day of gas from its eastern offshore D6 fields to NTPC at USD 2.34 per million British thermal unit.?

Subsequently, the two firms differed on certain terms of gas supply agreement and the matter is in Bombay High Court. "However, the price of USD 2.34 per mmBtu is not a point of dispute... (and so) I request you to approve the price (which was) discovered through an open, fair and transparent bidding process."?

As per rules, Reliance was supposed to seek government approval for the sale price but did not do so as the contract with NTPC was not concluded, industry sources said.

If EGoM approves USD 2.34 per mmBtu price for NTPC, Anil Ambani Group's claim on 28 mmscmd D6 gas at the same price will become stronger. Compared with the government approved price of USD 4.2 per mmBtu for D6 gas, it stands to gain Rs 3,000 crore per annum for 17 years (Rs 51,000 crore).?

"Dispute and litigation particularly on natural gas, which is precious natural energy resource, is time consuming affair and do not benefit the country in any manner and disrupts the economic growth," Singh wrote.?

He asked Mukherjee to constitute an inter-ministerial group headed by Adviser (Energy), Planning Commission to finalise a standard gas sale and purchase agreement for sale and purchase of gas in line with international practice to avoid any dispute in future.