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OilMin asks RIL to divert some gas from RCF to power plants in Andhra

By Religare

As production from Mukesh Ambani-led Reliance Industries Ltd (RIL) has dropped to a new low, the Oil Ministry has asked the energy major to divert a portion of gas allocated to Rashtriya Chemicals and Fertilizers (RCF) to private power plants in the state of Andhra Pradesh.

RCF's Thal urea manufacturing plant is allocated with 2.1 million standard cubic meters per day of gas from RIL's KG-D6 block. As per the government's directive, a part of this 2.1 mmscmd of gas will be diverted to Hyderabad-based Bhagyanagar Gas Ltd along with other power plants in Andhra.


Subsequent to this gas swapping arrangement, RCF will continue to pay USD 4.2 per million British thermal unit, while the power plants will be required to pay the actual price of imported gas.

"The above swapping arrangement is subject to the condition that RCF will not have any additional financial burden and any additional financial implication (like additional transportation tariff, additional tax liability etc.) arising out of this swapping arrangement will be borne by the beneficiary entity," the ministry order dated May 31 had said.

Read more about: reliance industries
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