Oil regulator bats for Reliance

Says delay in gas project was govt's.

The directorate-general of hydrocarbons has given a clean-chit to Reliance Industries on the alleged delay in gas production from its field in the Bay of Bengal.

The DGH said a delay on the government's part to approve the use of a pipeline to transport the gas was responsible for the slippage.

The power ministry had sought the oil ministry's intervention to ensure that Reliance meets its commitment of supplying gas from the Krishna Godavari basin fields to National Thermal Power Corp (NTPC) by 2008.

Sources said the DGH, in a letter on November 29, 2005, explained to the petroleum ministry that a 11-month delay in granting the right of use for the Kakinada-Ahmedabad pipeline, which was to transport to the NTPC plants, was responsible for the production schedule being pushed back by a year to June 2008.

NTPC has already moved court against the alleged delay on part of Reliance in signing the gas sales and purchase agreement even after more than a year of the supply contract.

The DGH letter said no penal action was needed against Reliance as there was no delay on part of the firm in submission and approval of the Dhirubhai-1 and 3 discoveries, which were envisaged to produce 40 million standard cubic meters per day of gas.

According to the DGH, Reliance had filed for a rights of use and other statutory approval for the gas transportation pipeline by July 2004 but the approval came only on July 16, 2005.