Govt set to invest Rs 1500 cr in KG

KG#8 well to be named after Deen Dayal Upadhyay

The Gujarat government has decided to invest Rs 1,500 crore for development and exploration activities in the Krishna-Godavari block.

The decision follows the discovery of the largest reserves of natural gas in the Krishna Godavari basin by state owned Gujarat State Petroleum Corporation (GSPC).

"We will be investing an additional 1,500 crore for exploration activities in the KG block. Today, you are witnessing the fruit of our earlier efforts. Gujarat will be well ahead of other states in providing energy security to the country. We will take all necessary steps to bring the gas to the market at the earliest. KG#8 well of Krishna Godavari basin will now be known as 'Deen Dayal'," state chief minister Narendra Modi said on Sunday.

GSPC has discovered the largest reserves of natural gas in the Krishna Godavari basin. Initial test results indicate reserves of over 20 trillion cubic feet (TCF) of natural gas, valued at approximately Rs two lakh crore ($50 billion).

"This discovery will play a vital role in boosting economic activity in Gujarat in the twenty first century. The impact will be widely felt since gas will be a vital fuel for power generation, transportation, industrial development and domestic needs. The positive impact of this discovery will be felt on the every walk of life of the common man for a number of years. This will make small and medium industries competitive and provide increased employment opportunities," said Modi.

GSPC has discovered gas in its KG Block while drilling KG#8 well, which was awarded to Gujarat, under the NELP-three round of bidding.

The state government, through its wholly owned GSPC, had submitted bids to the Central government for KG exploration block on August 30, 2002 and had signed production sharing contract (PSC) with GoI for 1850 square metre on February 4, 2003.