Govt asks RIL to supply LNG to Dabhol project shows that both the central ministers of power and petroleum, who hail from Maharashtra, are giving preference to the Dabhol plant, which is located in Maharashtra, over declared policy to supply gas to fertiliser units on priority basis. Since the current price of LNG is $8.5 per mmbtu, they want to bail out the Dabhol plant by asking RIL to supply presumably LNG at $4.2 per mmbtu. Fertiliser plants are being subsidised by the government and cheaper gas would reduce the subsidy burden. On the other hand, the government is under no obligation to subsidise gas for Dabhol, which is an independent power producer, owned by Gail and NTPC. This out-of-turn allotment will create complications in the situation where there are more claimants for gas than RIL can supply.
MM Gurbaxani, Bangalore
