Fertiliser Units Denied Of Extra Hbj Gas

Brushing aside fertiliser department's proposal to allocate the additional gas available on the Hazira-Bijapur-Jagdishpur (HBJ) pipeline to fertiliser units, the government has decided to convert fallback allocation of gas to Essar Steel Limited and Reliance Industries Limited into firm allocation.

At its meeting on May 26, Gas Linkage Committee decided to convert fallback allocation of Essar Steel Limited and Reliance Industries Limited to the extent of 50 per cent - 0.70 million standard cubic metres (mmscmd) and 0.40 mmscmd respectively - into firm allocation subject to both the consumers paying HBJ transportation charges for the gas supplied against the proposed conversion of fallback to firm allocation.

 

The committee's decision was approved by petroleum minister Ram Naik the same day that it met. It is probably for the first time that the minutes of the meeting were prepared the day the committee met, and the minister's approval also obtained the same day.

Fallback allocation is made to various units on a purely temporary basis when gas is available because of the closure of some units which had been made firm allocation, or the inability of these units to lift the entire quantity allocated to them.

Fertiliser department's representatives said at the meeting that if surplus gas is available, priority should be given to the fertiliser sector.

During the discussion, it was said that the gas availability to the fertiliser sector has not increased as such and the proposal had been made as a measure of ensuring better utilisation of gas, particularly in view of the simultaneous shut-down of fertiliser plants during April 2000.

However, it was agreed at the meeting that a separate dialogue would be held between the fertiliser department and Oil and Natural Gas Corporation (ONGC) and Gas Authority of India Limited (GAIL) regarding the additional requirement of the fertiliser sector.