By IANS,
New Delhi: The Empowered Group of Ministers Tuesday decided on additional allocation of gas from Reliance Industries’ D6 block in the Krishna-Godavari basin, allowing the company to ramp up production.
The high-level ministerial panel, chaired by Finance Minister Pranab Mukherjee, decided on the allocation, which will allow Reliance to ramp up production to 60 million units by December. The current production rate is around 40 million units.
After the meeting, Petroleum Secretary R.S. Pandey told reporters that power plants would get an additional 13 million units, with oil companies being allocated another six million units.
“Besides, the panel has given 1.9 million units gas from D6 block to Reliance Petroleum,” said Pandey.
While 20 million units have been allocated on firm basis, distribution of another 30 million units has been decided on a temporary or ad hoc basis.
This ad hoc category includes 12 million units for power companies, 10 million units for captive power plants, six million units for oil refineries and two million units for city gas projects.
The government hopes that Reliance will first stabilise production at 60 million units, before further raising it to 90 million units.
Pandey said the gas purchase agreements will be completed by Dec 1, so that the production could be raised to 60 million units by the year-end.