Search the Internet          Tips  Sites: Finance, Investment

Andhra Pradesh to use Reliance gas by end of 2003

Syed Amin Jafri in Hyderabad

Andhra Pradesh will begin utilising the gas from Reliance Industries' fields in Krishna-Godavari basin by the end of 2003, Chief Minister N Chandrababu Naidu said on Friday.

Addressing a conference of district collectors in Hyderabad, Naidu said he would soon hold discussions with RIL chairman and managing director Mukesh Ambani on the plans for utilising part of the gas production from Reliance’s oilfields in Krishna-Godavari basin.

He said the Reliance group, which was investing Rs 7000 crore (Rs 70 billion) on the Krishna-Godavari basin gas exploration and associated infrastructure, has initiated the preparatory work for laying the main gas pipeline from Kakinada in Krishna-Godavari basin on the eastern coast to Goa on the western coast via Hyderabad.

The pipeline network would cover Visakhapatnam, east and west Godavari and Krishna districts on the Andhra coast, and Khammam, Warangal and Karimnagar districts in Telangana hinterland. The pipeline project within the state is likely to be completed by December 2003 and subsequently gas would start flowing. The pipeline would be extended to Mahbubnagar district later on.

Naidu said the state government would appoint consultants to suggest ways and means to utilise the huge natural gas resources estimated at seven trillion cubic metres. He said the Krishna-Godavari basin’s share in the country’s total gas reserves has increased to 60 per cent with the latest discovery. More gas reserves are forecast in the basin. Exploitation of the gas resources would transform the entire area, it is believed.

The state will promote gas-based industries and utilise the gas for domestic and commercial purposes. Besides cooking gas, the natural gas can also be used as fuel for the vehicles. The consultants will study the potential areas where gas can be used and recommend to the government the type of industries that can be set up in the region.

The consultants will also study the feasibility of laying gas pipelines to all the districts in the state.

The chief minister said that he was not concerned about the royalty that the state would be getting with the exploitation of gas resources by Reliance. His main aim was to ensure maximum utilisation of the new found gas resources within the state to give a boost to the state’s economy, he added.

ALSO READ:
More Money Headlines

Tell us what you think of this report