This offer, according to informed sources, was made during a post-bid negotiation for a tender to supply NTPC with LNG and/or natural gas.

"RIL has offered NTPC natural gas free of cost provided the power utility sells electricity generated from it to Reliance at a mutually agreed heat conversion rate," confirmed the sources. NTPC is expected to need around 12 million standard cubic metres per day of natural gas or three million tonnes of (LNG) over a 17-year term.

Apparently, NTPC is keen on the proposal but, according to the sources, "[the company feels] the heat conversion rate is a biddable commodity and if it choose that route [NTPC will] prefer to call a separate tender to go with the firm offering it the highest price."

Should the deal go according to plan, RIL will supply NTPC with natural gas from its D6 gas field in the Bay of Bengal.