Everyone is aware of the gas dispute issue between government owned electricity firm NTPC and Reliance Industries. NTPC is fighting a case against RIL for the latter's denial of supplying gas to the former's power plants in Kawas and Gandhar below a price of US$ 4.2 per mBtu.However, the case has been long pending.

Meanwhile, NTPC has announced that it will be buying gas from another PSU, GAIL for a period of 10 years at a delivered price of US$ 8 per million British thermal unit (mBtu).
As per the company, it will buy around 2.5 mscmd of gas (out of its annual requirement of around 15-16 mscmd) from GAIL at this price, which is around 19% higher than what Reliance Industries' (RIL) disputed deal would've cost the electricity generation firm.Including the cost of transportation, taxes and marketing margins, the gas sourced (at a price of US$ 4.2 per mBtu) from Reliance Industries would've cost NTPC US$ 6.7 per mBtu, which is still lesser than its latest contracted price with GAIL.
This raises the question, why the company has chosen to buy this expensive gas from GAIL when it has been crying hoarse all this while for the 'high' price that RIL is asking for!