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| Deora for reconstituting eGoM for allocation of RIL gas |
| Press Trust of India / New Delhi Aug 31, 2009, 14:23 IST |
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Petroleum Minister Murli Deora has sought reconstitution of an empowered Group of Ministers to decide on allocation of gas from RIL-operated KG-D6 fields to new customers.
Deora, who yesterday met T K A Nair, principal secretary to the Prime Minister, has formally written to the Cabinet Secretary for reconstitution of the eGoM on the lines of the previous ministerial group headed by the then External Affairs Minister Pranab Mukherjee.
When contacted, Deora confirmed having written the letter, saying: "We have to decide on allocation beyond the initial 40 mmscmd gas."
The previous eGoM had allocated the first 40 mmscmd of gas from KG-D6 among fertiliser, power, city gas, LPG plants and steel sector. RIL can, however, now produce close to 60 mmscmd, but has been constrained because of lack of government-identified customers.
In a recent letter to Petroleum Secretary R S Pandey, RIL's petroleum business chief P M S Prasad had said that of the customers identified by the government to receive the initial 40 mmscmd of gas, NTPC, Dabhol, Essar and GAIL are yet to draw a single unit.
RIL, he said, was supplying 37 mmscmd of gas to customers identified by the government. This includes 6 mmscmd on 'fall-back' or temporary basis to these customers as firms like NTPC, Dabhol and Essar fail to draw gas from KG-D6.
NTPC, which was allocated 2.7 mmscmd, is yet to sign a contract, while Ratnagiri Gas and Power - the owner of Dabhol - has signed a contract for 2.7 mmscmd but has not begun drawing yet. Essar and GAIL between them are expected to start taking 4 mmscmd of gas by next month.
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