The agency said the rating revision to stable with apositive outlook reflects continuing strong financial and operating performance.
The plant has been shut since 2013 for want of domestic gas supplies.
Oil Minister M Veerappa Moily reviewed the progress on the ambitious 1,680-km project with Turkmenistan Minister for Oil and Gas Mukhammetnur Khalylov, who is in New Delhi to attend the eighth Asia Gas Partnership Summit.
RIL and partner BP plc are carrying out remedial action to stop water ingress from choking wells even as the first production well on the block in more than four years ramped up output by over 15 per cent to 13.7 million standard cubic meters per day.
Natural Gas production from KG-D6 block has dropped to below 20 million standard cubic metres a day this week, from over 63 mmscmd peak output achieved in August 2010.
The Ministry refused to buy RGTIL's argument that the government has already allocated all of the projected 91 mmscmd gas output from the KG-D6 fields to customers in Andhra Pradesh, Maharasthra and other northern states, leaving no gas for transportation through its proposed pipelines from Kakinada to Howrah, Chennai, Tuticorin and Mangalore.
India's largest gas-fired power plant at Dabhol in Maharashtra has seen power generation plunge to less than 450 mega-watt against the total capacity of 1,967 MW, on falling natural gas supplies.
The output has dropped after hitting a peak of about 62 mmscmd in August, 2010.
Natural Gas production from KG-D6 block has dropped to 25.35 million standard cubic meters a day this month, from over 63 mmscmd peak output achieved in August 2010.
Ratnagiri Gas and Power, firm that now runs the Dabhol plant, was allocated 7.6 mmscmd of KG-D6 gas.
Reliance Industries' eastern offshore KG-D6 gas field has seen output drop to 29 million units a day, against a planned 80 million units, causing acute shortage in power generation, Oil Minister S Jaipal Reddy said on Tuesday.
RIL produced a total of 22.04 mmscmd of gas from Dhirubhai-1 and 3 gas fields and MA oil and gas field in the KG-DWN-98/3 or KG-D6 block in Bay of Bengal in the week ended December 30, 2012, the Directorate General of Hydrocarbons said in a production status report to the Oil Ministry.
Reliance currently holds 90 per cent interest in KG-D6.
ONGC and RIL bill their consumers like fertiliser plants and power stations in US dollar.
Pooling will also kick-start projects of Reliance Power, Torrent, Lanco.
$10 billion TAPI pipeline unlikely before 2020
Reliance Industries has informed oil regulator DGH that four smaller gas finds surrounding the D-1 and D-3 fields in the Krishna-Godavari basin can be commercially exploited.
Billionaire Mukesh Ambani-run Reliance Industries Limited began gas production from the Krishna-Godavari basin in April, 2009, and its 60 million standard cubic metres per day output led to a 75 per cent jump in natural gas availability in the country to 140 mmscmd.
Anil Ambani Group firm RNRL on Tuesday welcomed the government's move to protect NTPC's interest on sourcing gas from Reliance Industries, saying effective legal steps will defeat the Mukesh Ambani firm's 'malafide attempts to dishonour' its commitment.
NTPC was to open letter of credit in favour of RIL for an amount equivalent to a month's supplies.
The latest Ambani-sibling fight has now become a political battle.
Now that the Bombay High Court has rejected the Ministry of Petroleum and Natural Gas' (MoPNG) attempts to help Mukesh Ambani's Reliance Industries Limited (RIL) wriggle out of its 2005 contract to supply 28 million metric standard cubic metres per day (mmscmd) of gas to Anil Ambani's Reliance Natural Resources Limited (RNRL), the pressure on it has increased several times over.
The EGoM is to consider fixing users for about 50 million cubic meters per day of KG-D6 gas, official sources said. This is in addition to the initial 40 mmscmd output that was previously distributed primarily to urea and power plants.
Terming as "illegal" marketing margins charged by RIL on gas supplied to it, Anil Ambani group firm Reliance Infra has asked the Mukesh Ambani-led company to withdraw these charges and refund the payments it had made till now.
Reliance Industries has asked the government to immediately name new customers of its natural gas, saying it is being forced to produce less than capacity in the absence of mandated buyers.
Last week, RIL moved the apex court challenging the Bombay high court order that asked it to supply 28 mmscmd of gas to RNRL at $2.34 per mmbtu.
A division bench of Justices J N Patel and K K Tated said that the new agreement should be as per the memorandum of understanding between the Ambani brothers Mukesh and Anil. The MoU stipulates that RIL would supply 28 mmscmd of gas to RNRL for 17 years at the rate of $2.43 per million British Thermal Units.
The quantities and price of $4.2 per mmBtu for gas under the GSPAs signed for five years are as approved by the government.
Reliance Industries is believed to have signed agreements to sell gas from its eastern offshore KG D-6 fields to six power producers, including GVK, in Andhra Pradesh.
The petroleum ministry on Wednesday pledged support to power firm NTPC in its legal battle to get natural gas from Mukesh Ambani-led RIL at a price committed in 2004 and said the public sector unit's interests will not be compromised.
Reliance gets $4.215 per mmBtu for the gas it produces from KG-D6 fields off the Andhra coast. The price is fixed for the first five years of production. KG-D6 gas production began on April 2 and is slated to rise to 80 mmscmd by year-end, nearly doubling the nation's gas output.
The power company, which is in an existing contract with RIL for the supply of 1.8 mmscmd a day of gas, said its right as a third party would be affected in case interim relief is granted to RNRL. Clarifying that it was not a party to the dispute between the two Reliance companies, Gautami in its petition termed RNRL action as a 'spoiler' as its power plants are yet to be commissioned and natural gas is not required by it.
The unit, with a capacity to produce 150 Mw of power, has been shut since March 2009. Prior to its closure due to environmental reasons, the unit was running on liquid fuel. Reliance has already signed gas sales and purchase agreements with nine power sector players for supply of 11 mmscmd of natural gas from the KG-D6 block.
Gas production from Krishna Godavari basin block has dropped to just over 12 mmscmd and RIL is carrying out workover on main Dhirubhai-1 and 3 gas fields.
Re-instatement of 5% custom duty on crude imports will help.
The MoU says the gas supply agreement is with Reliance Energy and for the Dadri power project, senior counsel Harish Salve representing RIL said. "Nowhere does it say that the gas will go to RNRL," Salve told the division bench of Justices J N Patel and K K Tated. REL and RNRL are both Anil Ambani group companies.
The total requirement of regassified-LNG for operation of Block number 2 and 3 at base load is 5.7 million standard cubic meters per day. However from December 14, suppliers of RLNG -- GAIL, Indian Oil, Bharat Petroleum -- are supplying only 4.506 mmscmd.
In the last two years, there have been at least three instances of the government actively stepping in on Mukesh Ambani's side.
Sunil Jain explains why the government does not necessarily win if it applies a higher gas price.
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