EGoM to consider allocation of gas to power, refinery firms
An Empowered Group of Ministers headed by Finance Minister Pranab Mukerjee will meet shortly to decide on allocation of natural gas produced by Reliance Industries to users in power, petrochemical and refinery sectors.
New Delhi: An Empowered Group of Ministers
headed by Finance Minister Pranab Mukerjee will meet shortly
to decide on allocation of natural gas produced by Reliance
Industries to users in power, petrochemical and refinery
The seven-member EGoM (a Cabinet sub-committee) may meet
as early as this week, sources in know said.
RIL now has capacity to produce at least 65 million cubic
meters per day (mmscmd) of gas from its eastern offshore KG-D6
fields but is forced to restrict the output to under 35 mmscmd
for lack of government-identified buyers.
The EGoM includes Home Minister P Chidambaram, Petroleum
Minister Murli Deora, Law Minister Veerappa Moily, Fertiliser
Minister M K Alagiri, Power Minister Sushil Kumar Shinde and
Planning Commission Deputy Chairman Montek Singh Ahluwalia.
When contacted, Oil Secretary R S Pandey said the EGoM
has been constituted with the mandate to allocate gas to users
and pricing of gas was not included in its terms of reference.
"The previous EGoM had fixed the price of gas (at USD
4.205 per million British thermal unit) for five years and so
that continues," he said.
The previous EGoM, which ceased to exit with General
Elections in May this year, had allocated the first 40 mmscmd
of gas from KG-D6 to fertiliser units, power plants, city gas
projects, LPG plants and steel sector.
Demands from power plants, petrochemical units and
refineries, including those owned by RIL, would be considered.