HYDERABAD: The State Government has toughened its stand against the Gas Authority of India Limited (GAIL) over insufficient gas supply to power projects in the State, depriving AP Transco of 2,000 MW of power.

Chief Secretary J. Hari Narayan addressed another letter to Cabinet Secretary B. K. Chaturvedi, who heads the Committee of Secretaries on gas-related issues, stating that under-supply and high price was "unfair".

He had earlier pointed out to the committee on December 20, to ensure at least two MCMD (million cubic metres a day) to Andhra Pradesh from April at the administered price mechanism (APM) of $ 1.75 per MMBTU. It was however, not incorporated in the minutes.

This would be from sources other than Ravva field.

Sources said the State Government was sore over the Centre's action in referring all issues relating to Andhra Pradesh to a top official in the Ministry of Petroleum & Natural Gas who, it feels, is "indifferent" to its problems.

So much so, Energy Minister Mohd. Ali Shabbir had threatened during his recent visit to New Delhi that GAIL would not be allowed to draw gas from its wells in the State if it failed to meet Andhra Pradesh's needs.

The committee is yet to act on the Chief Secretary's plea.

Meanwhile, AP Transco CMD Rachel Chatterjee locked horns with GAIL over the latter's ultimatum to accept before January 16, the new rates of gas or forfeit its allotment.

The GAIL addressed two letters to Transco reiterating its stand and Ms Chatterjee responded with as many letters, asking GAIL to await the outcome of Chief Minister Y. S. Rajasekhara Reddy's recent meeting with the Union Minister.

She called the hike in the price of gas from US $ 3.3 per MMBTU to $ 4.5 per MMBTU as unjust and wanted the gas to be supplied at APM.

Quoting a gas tariff order issued by the Ministry in 2005, she said GAIL has the bounden duty to supply at least 55 MCMD to consumers at APM.

If there is shortage, it should purchase from others at higher price, meeting the price difference from oil pool account created for the purpose, she said.

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