Don’t miss the latest developments in business and finance.

NTPC, Essar, Torrent likely customers of Reliance gas

Image
Press Trust of India New Delhi
Last Updated : Jan 19 2013 | 10:47 PM IST

State-run NTPC, Essar Power and Torrent are among the firms identified by the Power Ministry for buying natural gas from Reliance Industries' eastern offshore D6 block.     

The power ministry identified the likely users of the fuel in line with the Gas Utilisation Policy approved by the government in June this year, official sources said.     

The policy made it mandatory for Reliance to first supply gas to the existing gas-based urea plants and then give 3 million standard cubic meters per day to LPG plants.     

Thereafter, up to 18 mmscmd of gas was to be given to gas -based power plants that were lying idle/under-utilised or are likely to be commissioned during 2008-09.     

Accordingly, the ministry wants Reliance to supply 7 mmscmd gas to NTPC's power plants in western and northern India, they said.     

Essar's plant in Gujarat has been identified to receive between 0.61 and 1.81 mmscmd gas, while Vemagiri plant in Andhra Pradesh is to get up to 1.02 mmscmd.     

Torrent's yet to be commissioned Gujarat plant has been identified to get between 2.13 and 2.63 mmscmd gas.     

More From This Section

In all seven existing plants of NTPC and eight units in the state sector were identified to receive Reliance gas.

Besides, 11 plants in private sector were also identified.

The plants likely to be commissioned in 2008-09 and those running on liquid fuel and can switch to natural gas were also identified.     

Gas would be sold to identified companies at government approved rate of $4.21 per million British thermal unit, sources added.

 

Also Read

First Published: Aug 27 2008 | 4:17 PM IST

Next Story