Saturday, May 28 2005 10:20 Hrs (IST) - World Time -

New Delhi: National Thermal Power Corp (NTPC), India's largest power generating company, yesterday (May 27, 2005) said the hike in natural gas prices would lead to an increase of Rs 0.67 per unit of electricity.

"It is a reasonable rise... it was long overdue and it will have a small impact on our tariff," NTPC chairman and Managing Director C P Jain told reporters in New Delhi.

The Government has raised natural gas prices by 12 per cent to Rs 3200 per thousand cubic meters per day from the present Rs 2850 per thousand cubic meters per day, for power and fertilizer units.

Jain said the 12 per cent rise in feedstock cost would result in rise in power tariff by Rs 0.67 per unit. "Power tariff are pass through," he said indicating the hike would be passed on to the consumers.

The increase in gas prices, he said, would not affect the company's investment plants.