ADAG’s proposed power plants face ‘just-in-time’ gas allocation | business | Hindustan Times
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ADAG’s proposed power plants face ‘just-in-time’ gas allocation

business Updated: Jun 21, 2010 23:58 IST

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The government may allocate natural gas to the Anil Dhirubhai Ambani Group’s proposed power plants, such as its Dadri project, only six months prior to commissioning, as reservation of gas is not allowed under the present policy.

“The gas utilisation policy is very clear. Gas, which is a precious asset, cannot be reserved for anyone,” a top government official said.

“So, for anyone wanting natural gas for their plants, be it in fertiliser, power or any other sector, the allocation is to be made closer to the time when they can actually consume that gas,” he said.

In a similar vein, Reliance Industries’ Chairman Mukesh Ambani last week told company shareholders that his firm will supply gas to ADAG plants as and when they are ready and it was subject to the allocation being made by the government.

About 12,000 MW of gas-based power plants are in various stages of implementation and fuel would be allocated to them as and when they are ready.

After the Supreme Court last month ruled that government alone had the right to approve the price of the gas produced from fields such as KG-D6 (Krishna Godavari

basin field) of Reliance Industries and fix its users, ADAG informally approached the Petroleum Ministry to approve allocation of gas to its proposed plants, including the 7,800 MW unit at Dadri in Uttar Pradesh.

The official said plants like those of ADAG would be considered for allocation of KG-D6 gas subject to availability — when there is surplus production.