The Hindu : Front Page : State, Reliance reach accord

Online edition of India's National Newspaper
Thursday, Nov 30, 2006
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State, Reliance reach accord

M. Malleswara Rao

HYDERABAD: The Andhra Pradesh Government and Reliance Industries Limited (RIL) reached an understanding here on Wednesday to establish a gas grid in theState by June 2008 with minimal infrastructure facilities and begin partial supply of gas to power projects and industries.

This followed three-hour long discussions between Chief Secretary J. Harinarayan and a seven-member RIL team headed by P. M. S. Prasad, Resident CEO (Petroleum). Senior officials from Energy, Transport, Industries and Finance departments aassisted the Chief Secretary.

According to the understanding, the RIL will start with a production of 40 MCMD (million cubic metres per day) from June and increase it to 80 MCMD mark later, which will make it the world's single largest gas producer.

Andhra Pradesh has been insisting that the RIL fulfil its commitment of fully meeting the needs of fertilizer plants, industries and domestic gas in the State from the production in the Krishna-Godavari basin before supplying gas elsewhere.

Talking to The Hindu , the Chief Secretary said some APSRTC buses would be operated with gas, while liquefied petroleum gas would be initially supplied to 33 towns.

Mr Harinarayan stated the RIL team had agreed to supply gas to four power projects ( 1,499 MW) on top priority. He, however, hastened to add that it was too early to assume that the agreements signed by developers of these projects with the ONGC and GAIL would now be cancelled.

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