National Thermal Power Corporation has stated
that it would sign the gas supply agreement with Reliance Industries for supply
of gas for its Kawas and Gandhar power projects in Gujarat, in August 2005.
The gas supply is scheduled to begin in 2008. The
agreement is likely to have a penalty clause should there be any delay in
commencing supplies.
The agreement will be first approved by Reliance
shareholders at the company's AGM scheduled for 3 August 2005.
According to earlier reports, NTPC and Reliance
were to enter into the agreement in April
2005. Reliance would be supplying 13 mmscmd of gas for 17 years to NTPC's
Kawas and Gandhar expansion projects with aggregate capacity 2,600 MW.