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Get RIL commitment on gas: Jairam Ramesh

NEW DELHI: In a scenario of continued shortage of gas for both power plants and the fertilizer sector, the Minister of State for Power, Jairam Ramesh has urged the Prime Minister, Manmohan Singh, to formulate a gas policy seeking ‘clear commitment’ from Reliance Industries Limited (RIL) on supply of KG basin gas from next year and discouraging capacity addition of gas-based projects till gas supply position is comfortable.

“I have taken up the issue with the Prime Minister and sought his intervention to formulate a gas policy that would satisfy both fertilizer and power sectors in the short-run. I requested him to get a clear commitment from RIL that 80 million cubic metres (mcm) of gas a day would be made available from the KG basin fields from March 2009 onwards,” he said. Mr. Ramesh said, at present, there was about 13,400 MW of gas-based power generation capacity and it required 67 mcm of gas a day. In addition, there was about 1,300 MW of gas based capacity waiting to be commissioned requiring 6 mcm of gas..

According to current estimates, gas supply of 80 mcm will be forthcoming from the KG basin through RIL by March 2009. “Even assuming that this quantum will not increase, I feel it is possible to ensure gas supply to fertilizer units in keeping with the projections of the Department of Fertilizers while at the same time ensuring gas supply to existing gas-based power plants,” he said.

Mr. Ramesh urged the Prime Minister to look after the needs of the existing gas-based power capacity on a priority basis. “If additional gas comes from either KG basin itself or through other means, then new gas-based projects could be considered. Till then, no new gas based generating capacity be encouraged till there is firm assurance of gas supply well in excess of 80 mcm and till new import contracts are negotiated,” he said.

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