Special Correspondent

Chief Minister meets Manmohan Singh, Pranab and Murli Deora

NEW DELHI: Chief Minister Y. S. Rajasekhara Reddy has expressed confidence that the “Empowered Group of Ministers” (EGM), led by External Affairs Minister Pranab Mukherjee, would positively consider Andhra Pradesh’s demand for allocation of 8.93 million metric standard cubic metres per day (MMSCMD) of natural gas from the first supplies of gas by the Reliance Industries Limited (RIL) in the Krishna-Godavari Basin to meet the requirement of the existing power projects.

Talking to mediapersons after meeting Prime Minister Manmohan Singh, Mr. Mukherjee and Petroleum and Natural Gas Minister Murli Deora here on Wednesday, he said EGM might present its report on the gas supply within a week or 10 days. He pointed out to them that the Centre, about 6-8 years ago, had allocated 12.93 MMSCMD for different power units in the State. But now the State was receiving only 4 MMSCMD. He requested the Centre to first honour its earlier commitment, before making fresh allocations. “So, our point is that first supplies produced by Reliance in KG basin should be given to power units in A.P.” Dr. Reddy said Mr. Mukherjee assured him that the Centre would honour its prior commitments on the gas supply.

Earlier in a memorandum to EGM, Dr. Reddy pointed out that on the assurance of the Centre and Gas Authority of India Limited (GAIL), the State government entered into Power Purchase Agreements (PPAs) with various private developers for promotion of 2700 MW of gas-based power projects. The total natural gas committed for the 10 gas-based projects in the State was 12.93 MMSCMD. But only 4 MMSCMD was being supplied now .


Any diversion of gas from the KG basin to the Centre-owned power projects, without giving priority to A.P., would adversely affect the State’s power projects, he said and added that the diversion could be made at a later stage when the gas production increased.