A. Saye Sekhar

RIL urged to supply 2 MCMD for revival of fertilizer unit

State Government expects them to be fully operational by mid-2008

The Reliance Industries Limited will produce 40 million cubic metres of gas a day

HYDERABAD: The Government is pretty confident of making gas-based power projects in the State fully operational by mid-2008, thereby tapping the full resource of 3,000 MW of power, when natural gas from blocks belonging to the Reliance Industries Ltd (RIL) in the Krishna-Godavari Basin becomes available.

“We want to be as flexible as possible to bring RIL into the activity for supplying at least 50 per cent of its methane-rich gas to the utilities in the State, so that it can substitute many fuels,” said D. A. Somayajulu, advisor to the State Government.

Installed capacity

The RIL will produce 40 MCMD (million cubic metres a day) of gas.

While the installed capacity of the existing plants is 2,700 MW, a plan to add another 300 MW was approved long ago.

Presently, ONGC-GAIL are supplying about three MCMD through which 950 MW of power is being generated by the projects.

To make these power plants reach maximum plant load factor, at least 11 MCMD of gas is required.

Besides, the Government is expecting that Nagarjuna Fertilisers and Chemical Ltd would require 3 MCMD of natural gas for producing urea.

Chief Minister Y. S. Rajasekhara Reddy has urged the RIL to supply 2 MCMD and enable revival of the fertiliser unit at Ramagundam.


The Union Government is prioritising the gas utilisation by supplying it first to stranded fertilizer plants and power projects in that order.

City gas distribution with a special emphasis on compressed natural gas (CNG) followed by refineries and ceramic/tile industries and other industries form part of the priorities.

Crucial role

The State Government also played a crucial role in the prioritisation, said Mr. Somayajulu.

The State Government is contemplating making Krishna Godavari Gas Network Ltd (KGGNL) and RIL partners to supply city gas.

The State decided to appeal to the Petroleum and Natural Gas Regulatory Authority to treat the proposed RIL-KGGNL bid for laying pipelines for supplying the gas as a single bid.