Fapcci to approach AP govt over gas issue

The Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) is planning to approach the Andhra Pradesh government to enquire about the non-availability of additional gas for the state till 2007, with recommendations regarding payment of damages to the affected industries.

As a reaction to the reports in Business Standard, Fapcci president O P Goenka said, "The government sanctioned gas linkages to various projects based on the projected availability of 17.7 million cubic meters per day (MMCMD). But now with the actual availability being only 7.2 MMCMD, many industries will be affected. There should be an emergency clause whereby the government pays damages to the industries that finalised their operations based on the projected gas availability."

"We are also enquiring with UAE-based RAK Ceramics regarding the current status of the company," Goenka said.

RAK Ceramics was asked by Union petroleum minister Mani Shankar Aiyar to relocate its proposed plant, as it needs gas from 2005 and the government will not be able to provide it before 2007.

"There is definitely a shortage of gas now, which will affect new industries. The situation is not conducive for investment in the state because of this factor," Goenka said.

Hemalata, secretary of Fapcci, said that non-availability of gas will have a cascading affect on local industries.