Fertiliser units worried after HC verdict on RIL gas
25 Jun 2009
The fertiliser industry, which was granted the first right over gas from Reliance Industries' D6 fields in the Krishna-Godavari Basin, has raissed concern over the Anil Ambani-run Reliance Natural Resources Ltd getting the maximum gas allocation after the Bombay High Court order and sought firm assurance on uninterrupted supplies.
Fifteen urea-manufacturing plants were allocated the first 14.97 million standard cubic metres of output per day from D6 by a Pranab Mukherjee-headed cabinet committee before the elections.
"The industry is concerned after the judgment of the Bombay High Court according to which Reliance Natural Resources Ltd (RNRL) is to get 28 mmscmd of gas from the KG Basin," Fertiliser Association of India (FAI) director general Satish Chander said in a letter to fertiliser secretary Atul Chaturvedi.
After fertiliser, power plants were allocated 18 mmscmd of gas from D6. RIL currently produces about 28 mmscmd, which would reach the planned 40 mmscmd initial output in July.
"We hope that it will not affect the supply of gas from the KG Basin to the fertiliser industry. A reconfirmation from the government in this regard will remove the uncertainty in supply of feedstock to the fertiliser industry," Chaturvedi said, according to PTI.
(See also: RIL avoiding negotiations, claims RNR counsel)
