The bids for KG gas are coming in but the fertiliser industry is not happy. The fertiliser secretary has written to the oil secretary saying that Reliance has set exceptionally strict terms in the bidding conditions.NDTV spoke to the five-fertiliser companies who have put in their bids - Chambal Fertilisers, Nagarjuna Fertilisers, RCF, IIFCO and Kribhco to get an idea of the terms.
Buyers would have to pay for the gas even if they don''t want to, called a take or pay clause. However, Reliance the seller doesn''t pay any penalties if it can''t deliver. If it fails to supply in a particular month then they will only offer discounted price for the deficit quantity the month after.RIL has told the initial 10 bidders that KG gas supply will begin from July 2008 and firm supplies from January 1, 2009.But if they fail to do so, RIL pays no penalty.
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