Telengana stir has RIL worried over KG-Basin | business | Hindustan Times
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Telengana stir has RIL worried over KG-Basin

The resumption of agitations against the division of Andhra Pradesh poses a serious safety and security threat to India’s largest gas field on the east coast of the state.

business Updated: Jan 04, 2010 08:17 IST
Anupama Airy

The resumption of agitations against the division of Andhra Pradesh poses a serious safety and security threat to India’s largest gas field on the east coast of the state.

Reliance Industries Ltd (RIL), which owns the $8 billion-plus KG-D6 gas production facility on the east coast of India, has warned the central government of the likelihood of a supply disruption, following threats from the agitating political parties on the Telangana statehood issue.

"As part of the ongoing agitation against the division of the state of Andhra Pradesh, all the political parties are planning to intensify their protest by stopping the production operations in all the oil and gas installations on and off the coast of Andhra Pradesh,” RIL’s Executive Director, PMS Prasad told the petroleum ministry in a letter on December 22.

Any supply disruption from KG-D6 field, which produces over 45 per cent of India’s gas production, would hurt the country’s industrial activity.

The Joint Action Committee of Andhra Pradesh, which is against a separate Telangana state, had asked Reliance Industries Ltd to completely stop its oil and gas operations on the east coast for two days on December 24 and 25, though nothing untoward happened in that instance.

Petroleum secretary R.S. Pandey agreed that any such threats in the future can have a “major impact in case of any supply disruption.”

Quoting reliable sources, the Reliance Industries letter said the political mood in the East Godavari District is that token dharnas and relay fasts are not eliciting much response from the Centre.

“We apprehend that if the operations of oil and gas companies, particularly the gas production from RIL, is disrupted for at least a couple of days, it will have a visible impact, exert pressure and will elicit a quick response from central government,” it said.

“The aim of paralysing RIL operations and stoppage of gas production would be to exert pressure on the central government not to divide the state of Andhra Pradesh.”

Political activists including students have resumed their protests after a short break for the New Year.