NTPC reacts with angry letter to government

Vol 4, PW 1 (16 Feb 00) News in Brief

Indias National Thermal Power Corporation (NTPC) is accusing Petronet-LNG of not safeguarding its interests.

In a leaked letter to the oil ministry dated 22nd January this year, NTPC chairman Rajendra Singh writes: There are certain issues where changes sought by Petronet-LNG do not protect the safeguards required by NTPC or the changes sought are in deviation to the principles approved by the government. In particular NTPC is angry at Petronet-LNGs failure to guarantee that it can offer the cheapest price for LNG over rival importers.

The letter adds that an NTPC candidate should assume the role of chairman to replace the present chairman Suresh Mathur when the new equity shareholding pattern is formalised. NTPC has been granted 10% equity in Petronet-LNG and is its biggest customer.

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