Reliance told to pay BPCL Rs 50 crore

Over price differential in naphtha supplies

NEW DELHI: The Supreme Court on Monday directed Reliance Industries to pay Rs 50 crore within two weeks to BPCL for the price difference in naphtha supplied by the state-run company to RIL plant in Raigad.

In an interim order, a bench headed by justice A K Mathur asked RIL to pay Rs 50 crore against BPCL’s demand of Rs 110 crore subject to the final order. The court, also asked BPCL not to execute the decree allowed earlier by the Bombay High Court in the case.

Reliance’s counsel Harish Salve said the parties were trying to arrive at a solution and RIL had made a claim for refund of price overpaid to BPCL.

BPCL and Reliance had entered into an agreement in August 1986 for supply of naptha in bulk as a feedstock for manufacture of purified terephthalic acid (PTA).

Under the agreement, BPCL had agreed to supply special cut naphtha (SCN) of 110140 cut grade for Reliance’s petrochemical plant at Patalganga in Raigad district at Rs 944.87 per MT, the price fixed by the ministry of petroleum.

 b_rakesh@dnaindia.net