Thursday, December 22 2005 18:33 Hrs (IST) - World Time -

Mumbai: The Bombay High Court today (Dec 22, 2005) deferred till tomorrow the petition filed by the state-owned National Thermal Power Corporation (NTPC) seeking an ad interim relief against Reliance Industries Ltd for not signing the Gas Sales and Purchase Agreement and praying for execution of the contract as per the bid.

The hearing was adjourned till tomorrow by justice S F Vajifdar as both sides sought time to argue the matter.

The court today suggested that both the parties find an amicable solution to the issue.

The power major prayed for a court direction to RIL for 'specific' performance of the GSPA which NTPC felt, if not done could hurt its upcoming 2,600 MW power projects in Kawas and Gandhar in Gujarat.

As an interim measure, NTPC has urged the court to direct RIL not to sell, commit or offer gas to any other customer.

"RIL has not agreed to sign the GSPA based on the terms and conditions agreed upon in the bids process," NTPC had earlier said in communication to stock exchanges.

Last year, RIL had won the bid for gas supply at USD 2.97 per Million British Thermal Units (MBTU) from 2007 for two of NTPC's ambitious power projects.

However, the signing of the final agreements was in abeyance, as RIL had sought some changes in the conditions.

NTPC has already taken up this issue with the Power Ministry, whereby it had asked the matter to be taken with Petroleum Ministry for ensuring that RIL honours the contract by signing the GSPA at the earliest and develops its gas fields and pipeline network as per the original schedule.