No change in gas allocation priority to fertilisers: EGoM

An Empowered Group of Ministers (EGoM) headed by Defence Minister A.K. Anthony Wednesday decided against changes to the gas allocation policy and any diversion of KG-D6 gas allocated to the fertiliser sector.

"Today's decision is that the requirement of fertilizer for the agriculture sector will be fully protected. While doing that, possibilities are being explored whether any additional gas can be made available to the power sector," Petroleum Minister M. Veerappa Moily told media persons after the EGoM meeting.

The EGoM will meet once again July 22 to discuss the methodology of making available gas from other sources to the power sector in the short and medium terms.

"This agriculture season is very good. We need to protect the requirement. There are other methodologies that we are working and ensuring that gas is made available for power. The additional requirement of power would be made available. We are working on strategy, which will be presented to EGoM on Monday," Moily added.

Fertiliser units fully consume the 14 million standard cubic metres per day of gas produced from the Reliance Industries consortium-operated KG-D6 fields in the eastern offshore

The Fertiliser Association of India has repeatedly represented to the government to continue with the first priority for fertilisers in the allocation of natural gas. Depriving the sector of its allocated gas will force the industry to either reduce urea production or use more and more of imported Liquefied Natural Gas (LNG) diverted to fuel-starved power plants.