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Shah panel to submit report on ONGC-RIL gas dispute by Aug 31

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Press Trust of India New Delhi
Government has extended by one month the tenure of A P Shah Committee looking into the dispute over natural gas migrating from state-owned ONGC's idle blocks in KG basin to neighbouring fields of Reliance Industries.

The Committee will now submit its report by August 31, Oil Minister Dharmendra Pradhan said today.

"Government constituted a single member committee comprising of Ajit Prakash Shah former Chief Justice of Delhi High Court on December 15, 2015 to look into the dispute between RIL and ONGC regarding ONGC blocks (KG-DWN-98/2 & Godavari PML) and RIL block (KG-DWN-98/3) in Krishna Godavari basin," he said in a written reply to a question in Rajya Sabha here.
 

The Committee was to submit its report by July 31.

"However, considering the volume of work involved and complexity of the issue, the Committee has sought extension till August 31, 2016 for submission of the report which has been agreed by the Government," he said.

The panel is looking into "acts of omission and commission" as well as compensation to ONGC.

"Terms of References (TORs) to the committee includes looking into the issue of gas migration and give its recommendations in this regard," he said.

Pradhan said the committee has conducted hearings and has taken written submission from all stakeholders.

"The next course of action will be decided by the government after getting the recommendations of the Committee," he said.

It has been asked to "quantify the unfair enrichment, if any, to the contractors of the adjacent block KG-DWN-98/3 (KG-D6) and measures to prevent future unfair enrichment to these contractors on account of gas migration."

It has also been asked to "recommend action to be taken to make good the loss to ONGC/government on account of such unfair enrichment to the contractors."

RIL has 60 per cent interest in KG-D6 block, while Niko holds 10 per cent stake. BP holds the remaining 30 per cent.

DeGolyer and MacNaughton (D&M), had in its November 30 report, established that reservoirs in ONGC's Krishna Godavari basin KG-DWN-98/2 (KG-D5) and the Godavari-PML are connected with Dhirubhai-1 and 3 (D1 & D3) field located in the KG-DWN- 98/3 (KG-D6) Block of RIL.

It states that as much as 11.122 billion cubic meters of ONGC gas has migrated from Godavari-PML and KG-DWN-98/2 to KG-D6. Of the 58.68 bcm of gas produced from KG-D6 block since April 1, 2009, 49.69 bcm belongs to RIL and 8.981 bcm could have come from ONGC's side, D&M said.
The primary objective of the project would be to serve

the people of North East and provide quality medical care.

There would be no profit motive and any revenue generated from the hospital would be invested back in the hospital for further improvement and the implementing agency would recruit local people, Shankar said.

BAVP chairman Anil Bhalerao thanked ONGC for having faith in them and signing the MoA for the setting up of the hospital.

"We are committed to provide quality medical care at a very low cost and if surplus revenue is generated, we will plough it back in the hospital. We will take only the goodwill of the people with us," he said.

The rates would be as low as 70 per cent of the market rate and 33 per cent of the hospital facilities would be exclusively for the economically weaker sections, he said.

Among others who spoke on the occasion were ONGC's Director (Onshore) V P Mahawar and Director (HR) D D Mishra.

Later on ONGC authorities handed over a cheque of Rs 14.79 crore to BAVP as the first instalment of the project.

The first phase of the hospital would be set up by July 2019 at an estimated cost of Rs 99.07 crore to create hundred beds and provide internal medicine, paediatrics, general surgery, ENT, orthopaedic, gynaecology and obstetrics, pulmonary medicine and opthalmology facilities, ONGC officials said.

The second phase would cost Rs 96.05 crore to create 120 beds with cardiology, cardiac surgery, gastroenterology, nephrology, urology, neurology, neurosurgery, paediatric surgery, surgical gastroenterology, plastic and cosmetic surgery and was expected to be completed by July 2021.

The final phase was estimated to cost Rs 117.22 crore for creation of 142 beds with renal transplant, IVF, endocrinology, surgical oncology, medical oncology and radiation facilities and would be completed by July 2023.

The 50 acre land for the project was acquired in July 2013 at a cost of Rs 3.75 crore, the officials said.

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First Published: Aug 10 2016 | 6:57 PM IST

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