Financial Daily from THE HINDU group of publications
Friday, Dec 23, 2005
Industry & Economy - Petroleum
Reliance to develop gas grid in AP May set up bio-diesel plant
Hyderabad , Dec. 22
BUOYED by the natural gas find in the Krishna-Godavari basin along the Andhra Pradesh coast, Reliance Industries Ltd (RIL) has come up with a proposal for developing a gas grid in the State.
The company is willing to help in setting up a special economic zone for petrochemicals near the upcoming Shamshabad Greenfield international airport on the outskirts of Hyderabad.
A team of RIL officials has sought allotment of 25,000 acres of land for the proposed SEZ. The team's visit is a follow up of the meeting the RIL Chairman, Mr Mukesh Ambani, had with the Chief Minister, Dr Y.S. Rajashekara Reddy, last month.
Interacting with RIL officials along with senior Cabinet colleagues and officials, Dr Reddy asked the Reliance team to ensure supply of gas for domestic, industrial and commercial use in the State by June 2008, according to official sources.
Reviewing issues relating to the KG Basin and the potential of the gas find in the region, the Chief Minister wanted RIL to complete the pipeline networks throughout the State by 2008 to supply gas in a phased manner.
Mr P.M.S. Prasad, President (Oil and Gas), RIL, said that enough gas supplies were available and assured they would supply the surplus gas outside the State after meeting the requirements of the State. RIL is developing a 48-inch pipeline from Kakinada to Hyderabad and plans to extend it to the Jamnagar refinery. The Andhra Pradesh trunk pipeline would cover seven districts and 56 mandals.
The Reliance visiting team expressed keenness to undertake gas distribution projects and planned to promote city gas networks in Vizag, Kakinada, Vijayawada, Guntur, Rajahmundry, Hyderabad, Rangareddy, Medak, Warangal and Nalgonda in the first phase.
The team also said it was contemplating implementation of a bio-diesel production plan. In the first phase, it proposes to create 100,000 tonnes of bio-diesel production capacity at Kakinada by 2011, while establishing captive Jatropha plantations through contract farming across 100,000 hectares in the State.
The Chief Minister offered land for raising bio-diesel plantations and suggested them to jointly take it up under the public-private partnership model through A.P. Forest Development Corporation.
Dr Reddy assured support of the State Government for gas and bio-diesel production plans.
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