* Reliance, fertiliser industry yet to sign deals
* Fertiliser plants say will pay the price set by govt
NEW DELHI, March 31 Reliance Industries
has agreed to temporarily supply gas to India's
fertiliser plants at current prices, although the two sides have
failed to sign new deals, the top official in the fertiliser
Energy group Reliance's five-year gas supply agreements with
sectors including fertiliser makers and power producers expires
at midnight, requiring buyers to sign new contracts for supplies
from its D6 block in the Krishna Godavari basin.
"Reliance will continue to supply gas at $4.20 (per million
British thermal units). The Fertiliser Association of India
(FAI) and Reliance will sit together and finalise the (next
contracts) agreements as early as possible," Fertiliser
Secretary Shaktikanta Das told reporters on Monday.
Das did not elaborate on the duration or other terms of
potential new contracts between Reliance and the fertiliser
The cabinet last year approved a formula that linked prices
of locally produced gas with global benchmarks, which would have
nearly doubled gas prices from current levels from Tuesday.
The Election Commission asked the government to defer the
price increase until the completion of the five-week general
election in the middle of May.
India's main opposition party Bharatiya Janata Party (BJP),
which surveys show is on course to become the largest
parliamentary party, has said it will review the gas pricing
formula if it is elected.
"We will pay the marketing margins and gas prices from the
date as may be notified by the (new) government," Satish
Chander, director general of FAI, said. He said he hoped the
deadlock over the contracts would end soon.
(Reporting by Nidhi Verma and C.K. Nayak; editing by Jane