Friday, December 23 2005 16:25 Hrs (IST) - World Time -

Mumbai: Country's power major, National Thermal Power Corporation (NTPC) and Reliance Industries Ltd (RIL) today (Dec 23, 2005) informed the Bombay High Court that they were still working out modalities to sort out their dispute over gas sale and purchase agreement.

Counsel for NTPC and RIL informed that they were in favor of adjourning the hearing to next month after the Christmas vacations get over. They said the power companies would hold consultations on the issue and inform their decision to the judge in his chamber this afternoon.

Accordingly, the petition filed by National Thermal Power Corporation (NTPC) alleging breach of a contract by Reliance Industries Ltd (RIL) for not signing the Gas Sales and Purchase Agreement, would be heard later during the day.

Hearing the arguments advanced by both sides, Justice S F Vajifdar had said that this is a very delicate matter and both parties should reach an amicable solution by talking to each other and attempt to solve the differences they have.

NTPC also urged the court to restrain RIL from signing gas supply contract with any other party, as it would hurt the prospects of its upcoming 2,600 MW projects in Jawas and Gandhar in Gujarat.

RIL disclosed to the court that its primary concern is the uncapped liability clause in the contract, which has resulted into making the project 'unbankable' for RIL.

RIL had emerged winner of the bid to supply gas at US Dollars 2.97 per million British Thermal Units (MBTU) to NTPC's upcoming projects in Gujarat for 17 years from 2007, for which it had signed the letter of intent in June 2004.