Look into KG basin crisis: CM to PM

Andhra Pradesh Chief Minister N Kiran Kumar Reddy has urged Prime Minister Manmohan Singh to look into the serious issue of gas production from D6 wells in the Krishna-Godavari Basin in the wake of suspicion that Reliance was deliberately reducing the production.

I am not CBI to investigate whether Reliance is producing gas adequately or deliberately reducing production. It's a very serious issue and the Centre should probe into it, the Chief Minister said in reply to a question at a press conference here this evening. He would take up the issue with the Prime Minister at their next meeting. Kiran pointed out that 8,000 MW of power generating capacity in gas-based plants across the country was lying idle due to non-availability of gas. In monetary terms, an investment of about Rs 40,000 crore was put into these plants and hence the Government of India should take a positive view about this, Kiran added.

In Andhra Pradesh alone, 2,000 MW of installed capacity in gas-based power plants was lying idle due to non-availability of fuel. Though the Empowered Group of Ministers allotted 75 per cent of gas to power plants in the state, only 38 per cent was being delivered now. Gas-based power plants produced 43 million units of electricity during the corresponding period last year, but now it has fallen down drastically to 24 mu. We have been constantly requesting the centre for allocation of gas. I will meet the Prime Minister again and demand more gas for the power plants in the state, the Chief Minister said. To overcome gas shortage on a long-term basis, the state government was building a floating RLNG terminal as well as an onshore terminal on the Bay of Bengal coast for importing gas from abroad. Both the terminals would cost Rs 12,400 crore and the interest component on the loan would amount to Rs 750 crore per annum, the Chief Minister noted. Environmental clearance was being awaited for the floating terminal, which was expected to come into operation in December 2013.

Referring to the unprecedented power crisis gripping the state, the Chief Minister said there was a shortfall of 50 million units now due to drastic reduction in hydel and gas-based power generation to the extent of 48 mu. In the last three to four days, the gap between demand and supply widened further to 70 million units leading to enhanced power cuts across the sectors. We are imposing a three-day power holiday for the industries, but if they produce their own power, we will waive the wheeling charges and also the electricity duty, he announced. For the agriculture sector, efforts were on to ensure power supply for seven hours in two spells. This year, there is an unforeseen problem on the power front due to various factors. We are buying 28.66 million units of power from different sources but still unable to meet the demand. The state government in not lax but there is no power available, Kiran said, seeking to rebut opposition criticism.

PTI