Ratnagiri Gas board okays gas deal with RIL

Ratnagiri Gas and Power Pvt. Ltd. (RGPPL) board approved the proposal to buy gas from Reliance Industry Ltd.’s (RIL) K-G basin at $ 4.2 per Million British Thermal Unit (MBTU).

One of the promoters RGPPL NTPC had opposed the purchase of RIL’s K-G basin gas sighting its ongoing dispute between the NTPC and RIL which currently pending before Bombay high court.  However as another promoter of the RGPPL, GAIL wanted to have deal, matter was placed before the board for final decision.

As the nominees of the Maharashtra government and financial institutes on the board, supported the deal, board approved the deal, told sources close to development.

The central government had allocated 2.7 million metric cubic meters per day (MMCMD) till September this year to RGPPL which would marginally increase generation from Dabhol plant as at present plant is generating around 650 MW of power on the allocation of 2 MCMD.

The 2100 MW Dabhol plant can become fully operational, once plant starts receiving 8.5 MMCMD, September onwards.