India's Reliance ready to sign NTPC priority deal

MUMBAI, June 26 (Reuters) - India's Reliance Industries (RELI.BO) has told state-run NTPC (NTPC.BO) it is ready to sign sales agreements to supply gas from its east coast fields in line with government directives for allocations to priority sectors.

In the letter to NTPC, a copy of which was obtained by Reuters, Reliance said it was "ready and willing" to sign gas supply agreements for the Anta, Dadri and Faridabad plants in line with government allocation priorities.

"If this (is) acceptable to you, we shall have the documents made ready for execution," Reliance said in the June 26 letter.

The government has directed Reliance to supply the gas to priority sectors such as fertilisers and power.

NTPC Chairman and Managing Director R. S. Sharma said this week the government had allocated 2.6 million metric standard cubic metres a day (mmscmd) of gas to NTPC at $4.2 per million metric British thermal unit (mmBtu) under the priority scheme. [ID:nBMA003195]

Separately, Reliance and NTPC are in dispute over the status of an offer to supply 12 mmscmd at $2.34 per million metric British thermal unit (mmBtu) to separate NTPC plants.

Sharma had said the company had invited Reliance for discussions twice, but had not received a response. (Reporting by Nidhi Verma and Ami Shah; Editing by John Mair)