As the dust settles on last week's historic apex court verdict in the Reliance Industries (RIL) and Reliance Natural Resources case, the focus has now shifted to another ongoing gas dispute - and that is between RIL and NTPC. Since the Supreme Court has upheld the Govt's supremacy when it comes to deciding the price of gas some analysts are of the opinion that this could be a possible setback of sorts for NTPC. However, Govt sources say that the SC verdict is not intended to prejudice NTPC case. Proceeds of NTPC is not going to private pockets. Govt sources also add that NTPC’s stance will be examined in light of the govt gas policy. Govt sources say that even if NTPC wins the case, it will require an approval of the empowered group of ministers (EGoM). It is learnt that the EGoM’s decision is unlikely before the Bombay High Court Hearing, which is scheduled on 26 July. Earlier, in the long-drawn battle RIL had said that it had no choice but to sell the gas at USD 4.2 per mmbtu to RNRL since that was the government approved price while RNRL maintained that it had to be the same as NTPC's bid price of USD 2.34 a unit, as agreed upon in the Ambani family MoU. RIL said even the NTPC bid was subject to government approval and attempted to prove this with various draft contracts between the two firms.
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