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Reliance for easing of gas rules

Mukesh Ambani-controlled Reliance Industries Limited has asked the Govt to allow it to use at least 5 million metric standard cubic metres of gas (MMSCMD) for its own captive use out of the first 40 MMSCMD gas to be produced within the next few weeks from its D6 gas fields in the Krishna-Godavari (KG) basin, reports Anupama Airy.

business Updated: Mar 24, 2009 22:48 IST
Anupama Airy

Mukesh Ambani-controlled Reliance Industries Limited has asked the government to allow it to use at least 5 million metric standard cubic metres of gas (MMSCMD) for its own captive use out of the first 40 MMSCMD gas to be produced within the next few weeks from its D6 gas fields in the Krishna-Godavari (KG) basin.

Though the government has already allotted the first 40 MMSCMD of gas to be produced from KG- D6 fields to core sector industries like fertilisers and power, Reliance has staked its claim over the portion of gas which remains unutilised by these priority sector customers.

Reliance has informed the government that some of the customers, even after having been allotted the gas, may not be able to use it due to a paucity of pipeline connectivity or other constraints. This portion of unutilised gas should be made available to it for its own captive plants, Reliance says.

The Empowered Group of Ministers (EGOM) on gas pricing headed by External Affairs Minister Pranab Mukherjee is set to meet sometime this week to take a final view on whether Reliance can be allowed to use this gas for its captive use.

P.M.S. Prasad, Reliance’s president for petroleum, said in a communication to Mukherjee and Petroleum Minister Murli Deora that based on ground realities “out of the first 40 MMSCMD, at least 5 MSCMD is likely to remain unutilized.”

The gas requirement of Reliance’s own captive plants as also its group company, Reliance Gas Transportation and Infrastructure Limited – which is laying the 1,400 km East-West gas pipeline—stands at 20 MMSMD.