National Thermal Power [Get Quote] Corporation would not be 'allowed' to buy KG-D6 gas at less than $4.20 per million British thermal unit (mmBtu), the union government told the Bombay high court on Tuesday.
The high court is hearing a dispute between Mukesh Ambani-led Reliance Industries [Get Quote] and Anil Ambani's Reliance Natural Resources [Get Quote] over a gas sale agreement, in which the government has intervened.
Additional solicitor general Mohan Parasaran told the court that 'NTPC will not be allowed to buy gas at less than $4.2 per mmBtu'.
He also said that the gas should be sold as per the marketing priorities as spelt out in the gas utilisation policy of the government.
NTPC has filed a separate suit against RIL, seeking that RIL execute the contract of gas supply.
RIL has denied that the contract with NTPC was formalised.
As per the NTPC-RIL contract, NTPC is due to get the gas from KG basin at $2.34 mmBtu.
As per RNRL, it is also entitled to get the gas from RIL at the same price as NTPC.
The hearing in RIL-RNRL case will continue.
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