The Hindu : Andhra Pradesh News : K-G basin gas only after January

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Monday, Sep 22, 2008
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Andhra Pradesh

Andhra Pradesh

K-G basin gas only after January

Special Correspondent

Mukesh Ambani’s announcement a disappointment to Andhra Pradesh

HYDERABAD: Andhra Pradesh will have to wait for some more time to receive gas from the blocks owned by Reliance Industries Limited (RIL) in the Krishna-Godavari basin.

RIL chairman Mukesh Ambani’s announcement on Sunday that pumping out gas would commence during the January-March quarter came as a disappointment to the State as the government was anticipating production from November. Mr. Ambani claimed that the pumping of gas from the last quarter was within the broad target of the company, but slightly later than anticipated. “The commencement of commercial production of crude will, no doubt, save foreign exchange. But the announcement is of little consequence for the State,” a senior official said.

Officials pointed out that power plants with a capacity of 1,300 MW were running at a plant load factor of 66 per cent, while another 1,400 MW installed capacity is lying idle for want of gas. The situation would significantly change once RIL commences pumping gas from its K-G basin reserves.

State government’s advisor on economic affairs D.A. Somayajulu says the State will derive considerable benefit once the gas production commences. “We will get about 50 million units of power without incurring any capital expenditure if the idle plants run with 90 per cent PLF and those running with 66 per cent PLF receive the balance requirement,” he told The Hindu.

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