Prime Minister Manmohan Singh on Monday assured a high level delegation from Andhra Pradesh, led by Chief Minister N. Kiran Kumar Reddy, that he would look into the State’s demand for increased allocation of gas to the power units. He would hold consultations with the Minister concerned and the officials on Tuesday and take a decision.
The empowered group of Ministers in the Union Cabinet decided to allot 2 MMSCMD to Ratnagiri power project in Maharashtra and Andhra Pradesh is claiming the variable cost of Reliance/ONGC gas to the State was Rs.2.10 a unit, compared to RLNG, whose variable cost when landing worked out to Rs.9.06 per unit.
The delegation told the Prime Minister that at least 14 units of the gas-based power plants had shut down in Andhra Pradesh following cut in gas supply and there was a loss of 1,174 MW of power.
The delegation also called on Power Minister Veerappa Moily and Defence Minister A.K. Antony.
Rajya Sabha member V. Hanumantha Rao told the Prime Minister that the Centre’s decision to divert gas had forced “lakhs of small industries” to close shops in Andhra Pradesh.
Peddapally Lok Sabha member G. Vivekanand urged Dr. Singh to make sure there was no reduction of gas to the urea manufacturing industries.
Earlier, the Chief Minister also called on President Pranab Mukherjee.
The delegation was joined, among others, by Union Ministers M.M. Pallam Raju, Panabaka Lakshmi, D. Purandeswari, former union minister T. Subbarami Reddy, A.P. Minister Ponnala Lakshmaiah and MPs from both the Houses of Parliament.