Reliance Industries has reportedly imposed fresh conditions on supply of gas to NTPC's Kawas and Gandhar power projects in Gujarat. According to news available, Reliance has imposed 15 new conditions relating to alterations in the gas pricing structure, compensation on non-supply of gas, etc.

NTPC, it may be recalled, had selected Reliance Industries after a global bidding exercise to select fuel providers to the power major's Kawas and Gandhar power projects aggregating 2,600 MW.

While NTPC has selected Reliance Industries as the fuel supplier, the formal gas sales & purchase agreement (GSPA) is pending finalisation. The agreement was to be signed in August 2005.

This last-minute impediment by Reliance can potentially jeopardize the Kawas and Gandhar projects and is bound to have an adverse impact on the future of mega gas-based power projects in India.

Reliance Industries, on 17 May 2004, had bagged the mandate for supplying 13 mmscmd of gas to NTPC's Kawas and Gandhar projects, aggregating 2,600 MW, for a period of 17 years.

Also See:

NTPC to sign gas supply agreement with Reliance soon (02-Aug-05)