NEW DELHI: The ministerial panel tasked with distributing gas is set to leave newly-built gas-fired power plants out in the cold and leave government with egg on its face when it considers a proposal to put electricity generation at the top of the pecking order for getting fuel from RIL's Andhra offshore field.
The panel, headed by defence minister A K Antony, is scheduled to meet on Wednesday to put power on a par with fertilizer in the priority list for getting RIL's gas. If the meeting finally takes place, the panel could end up trying to bail out plants whose gas supply agreement (GSA) with RIL may be deemed as invalid under its own policy. This is how it works: the proposal drawn up by the petroleum ministry says only plants with a GSA with RIL would benefit from the changed priority. The volume of gas diverted from other industries would be distributed in proportion to the quantity for which each plant has contracted with RIL.
These pacts were signed in May 2008 in accordance to the gas utilization policy decided that year by a ministerial panel headed by then external affairs minister Pranab Mukherjee. According to that decision, the policy was to be valid for five years, or May, 2013
The panel, headed by defence minister A K Antony, is scheduled to meet on Wednesday to put power on a par with fertilizer in the priority list for getting RIL's gas. If the meeting finally takes place, the panel could end up trying to bail out plants whose gas supply agreement (GSA) with RIL may be deemed as invalid under its own policy. This is how it works: the proposal drawn up by the petroleum ministry says only plants with a GSA with RIL would benefit from the changed priority. The volume of gas diverted from other industries would be distributed in proportion to the quantity for which each plant has contracted with RIL.
These pacts were signed in May 2008 in accordance to the gas utilization policy decided that year by a ministerial panel headed by then external affairs minister Pranab Mukherjee. According to that decision, the policy was to be valid for five years, or May, 2013
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