Abstract

The caselet deals with the transparent, competitive bidding policy of NTPC for purchasing liquefied natural gas (LNG). In this respect, the case also examines the various problems involved in the proposed Gas Sale and Purchase Agreement between Reliance Industries Limited and NTPC

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Competitive bidding in industrial business transactions
• Importance of having a transparent competitive bidding policy
• Understanding the factors affecting the pricing strategy
• and The complications of a Gas Sale and Purchase Agreement.

Keywords

Reliance Industries Limited (RIL), National Thermal Power Corporation (NTPC), Liquefied natural gas, Yemen LNG, Petronas LNG, Economic times, Bank guarantee, power generation capacity, Five year plan, Tenders, Gas Sale and Purchase Agreement, Price bids, British thermal units, Agreement of sale, Krishna Godavari basin, Demand and supply, Competitive bidding policy, Legal action