Dadri gas supply pact this month

New Delhi, Aug 2 | Updated: Aug 3 2005, 05:30am hrs
Ending months of uncertainty, Anil Ambani-controlled Reliance Energy is expected sign a deal this month to buy gas from Reliance Industries for its upcoming 7,480 mw Dadri power plant in Uttar Pradesh.

The gas agreement for the Dadri pdant is to be signed shortly... within 3-4 weeks, sources said.

The over Rs 20,000 crore Dadri project, touted as the worlds largest gas-based plant, will recieve gas from RIL beginning 2008-09, when the first unit is scheduled for commissioning. RIL will supply gas through a pipeline from Kakinada, the landfall point of Krishna-Godavari gas field.

RIL, which has found some 14 trillion cubic feet of gas reserves in Bay of Bengal, plans to begin production by the second half of 2008, selling its first gas to state-owned National Thermal Power Corporation (NTPC).

NTPC is to buy three million tonne of gas from Reliance for its Kawas and Gandhar power plants in Gujarat at $2.97 per million British Thermal Unit and this may be the benchmark price even for Dadri project, officials said.

The formal agreement will put to rest the uncertainty surrounding the project. The project had run into rough weather when at the beginning of the tussle over ownership issues, RIL raised certain issues relating to investment plans and gas supply to REL.