Mukherjee-led EGoM to allocate bulk of KG-D6 gas on Tuesday
26 October 2009
An Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee is expected to allocate the bulk of Reliance Industries' (RIL)KG-D6 gas on Tuesday to power plants.
The EGoM is to consider allocating about 50 million cubic meters per day of KG-D6 gas according to official sources. This offtake will be additional to the 40 mmscmed output that was earlier distributed to urea manufacturers and power plants.
According to sources the agenda prepared by the Oil Ministry provides for the power sector to get more than two-third of the additional gas to boost electricity generation with refineries including those of RIL getting over 11 mmscmd.
RIL's petrochemical plants have asked for allocation of 1.918 mmscmd.
The allocation will tentatively provide for 20mmscmd of the 50mscmd to be committed on firm basis while the balance will be on temporary or fallback basis till RIL is confident of producing 90 mmscmd of gas on sustainable basis.
Power plants will be given 12.08 mmscmd of gas on firm basis with additional 11.99 mmscmd on fallback basis. Captive power plants will get 10mmscmd on temporary basis, thus making up the entire 42.07 mmscmd fuel deficit faced by existing power plants even with the allocation of 18 mmscmd from the initial volumes.