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NHPC IPO in next 3-4 months: Sushil Kumar Shinde

Published on Mon, Jun 15, 2009 at 16:02 | Source : CNBC-TV18

Updated at Tue, Jun 16, 2009 at 12:17

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Nifty

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Power Minister Sushil Kumar Shinde said gas prices will fluctuate based on spot market rates. He stated that USD 2.34 per mmbtu (million British thermal unit) pricing need not apply to all cases.

Shinde is looking to advance power projects due 6-8 months later.

The initial public offering of NHPC, he said, will be in next 3-4 months.

Here is a verbatim transcript of the exclusive interview with Sushil Kumar Shinde on CNBC-TV18. Also see the accompanying video.

Q: Let me start by asking you about the High Court's order as far as RNRL and RIL is concerned, you must be a happy man today because the deal with NTPC was at USD 2.34 per mmbtu?

A: This is not a question of being happy or unhappy. The matter was long pending in the High Court and we were depending on the Court's decision. We will abide by that. I think today the court has given its decision and we are certainly happy.

Also see: Ambani gas case: HC rules in RNRL's favour

Q: There were some reports that suggested that outside of the two blocks which were under litigation ‑ Kawas and Gandhar ‑ you would actually ask NTPC to sign a gas sales and purchase agreement at USD 4.2. Will that now be under review post what we have heard from the High Court today?

A: This was for a particular project and other things have nothing to do with this. We have to have more power generation in the country. Wherever we get gas available, we are purchasing it.

Q: But there is a big difference in the price USD 2.34 versus USD 4.3?

A: That's for the limited contract. This was for a particular contract.

Q: Do you think there is need for the Empowered Group of Ministers which had come up with the gas pricing policy to re-look at it because they had suggested USD 4.32 and the court order at this point seems to suggest USD 2.3?

A: At this moment, I cannot say anything because the Court has given a decision about a particular case and the Empowered Group of Ministers meant it for general price fixation.

Q: As one of the key ministers, who is going to be concerned on where this price policy lies, would you think that there is a case for a review at this point in time?

A: I cannot express my view on this issue. This was for a particular project and the issues that are being handled are for general prices.

Q: Between NTPC and RNRL, 40 mmcmd would be given out by RIL so where do you actually see this leaving the gas utilization policy? Are you worried perhaps about the fate of other GSPAs?

A: More gas is coming in at the moment. The seller has to sell the gas and the buyer has to buy it for the generation of power. Naturally it will find the spot market which will fluctuate as per demand and supply.

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