CM urges PM to Call EGoM meeting on gas allocation

Chief minister Kiran Kumar Reddy on Monday urged Prime Minister Manmohan Singh to review the gas allocation policy adopted by the Empowered Group of Ministers (EGoM) in 2008 because of which Andhra Pradesh has been deprived of 2 MMCSMD of gas.

He requested the Prime Minister to convene a meeting of the EGoM immediately to conduct a review. “The Prime Minister responded positively and an official decision is expected Tuesday or Wednesday,” Kiran Kumar Reddy told reporters in Delhi. The chief minister, along with MPs from the state, called on the Prime Minister to take up the issue of diversion of 2MMSCMD of gas from the state to the Ratnagiri power plant in Maharashtra.

The chief minister informed the Prime Minister that the EGoM decided in 2008 to treat the Ratnagiri power plant on a par with a fertiliser plant.

However, the very next year, 75 per cent of Reliance’s total production from the Krishna-Godavari basin was allocated to Andhra Pradesh. The two decisions didn’t tie well together. “We wanted the Prime Minister to review that EGoM decision and honour the allocation of 75 per cent of the gas to AP,” the chief minister told reporters after meeting the Prime Minister.

“Our first demand is that the present allocation of 3.48 MMSCMD to AP be maintained,” Kiran Kumar said. He argued that if Reliance’s gas was used for power plants in AP, the unit cost would work out to Rs 2.10 for AP and Rs 3.50 for Maharashtra.

At that rate, the Maharashtra could purchase power in open access. If Maharashtra purchased RLNG, it would be cheaper for it compared to what it would cost Andhra Pradesh because of its geogrophaical location and the RLNG import facilties on the West coast, he told the Prime Minister.

Kiran Kumar Reddy denied reports that he had differences with the Union petroleum minister S Jaipal Reddy on the gas allocation issue. “Do not politicise the issue. The gas allocation issue is connected to the welfare of 2.25 crore power consumers in the state,” he said. During his visit to Delhi, the chief minister N Kiran Kumar Reddy also called on president Pranab Mukarjee at Rastrapathi Bhavan.  Later, the cheif minister  met the defence minister A K Antony, who is the convenor of the EGoM.  He also met Union power minister Veerappa Moily to press AP’s case.