Amid continued tirade among the Ambani brothers on the KG basin gas and its allocation issue, Petroleum and Natural Gas Minister Murli Deora has called for the re-constitution of the Empowered Group of Ministers (EGoM) to decide on gas allocation from RIL-operated KG-D6 fields to new customers.
Mr. Deora, who met Principal Secretary to the Prime Minister T. K. A. Nair on Sunday, 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, as the Government had to take the call on allocation of natural gas beyond the 40 million standard cubic metres a day (mscmd) production from the KG basin.
During the meeting, the Petroleum Ministry is learnt to have discussed the constitution of the new EGoM at the earliest so that the Ministry could consider further applications for allocation of gas from the KG basin resource. RIL cannot market or sell the gas on its own and has to wait for the government to identify customers.
The previous EGoM had allocated the first 40 mscmd of gas from KG-D6 among fertilizer, power, city gas as well as steel sectors and LPG plants. Reliance Industries is now is a position to produce close to 60 mscmd but has been constrained because of lack of government-identified customers.