YSR plea to PM for profit gas in kind

Hyderabad, June 20 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today urged Prime Minister Manmohan Singh to instruct the Ministry of Petroleum and Natural Gas to opt for profit gas in kind before June 30 and place the domestic gas pricing issue before the Cabinet.

In a letter to the Prime Minister today, a copy of which was released to the press, he said the pricing of domestic natural gas was of great concern to all and raised the issue during the Chief Ministers' conference on May 28 at New Delhi. Mr Reddy also took up this issue through a letter dated June 16.

He said at the exorbitant prices quoted by RIL, the additional financial commitment at the consumer level would be Rs 1,352 crore per annum, resulting in an average tariff increase of 42 paise per unit in fuel surcharge.

Since the state government would not impose such a tariff shock on consumers, the burden of meeting the extra cost would fall on the exchequer.

''In view of the critical importance of this issue to my state as well as the nation, I request that the pricing methodology for sale of gas for the power sector, with the views of my government, may be placed before the Cabinet for a decision.'' ''I understand the Production Sharing Contract (PSC) under NELP has a provision for the government to opt for profit petroleum either in cash or in kind.

''I also understand that this option in respect of KGD-VI in KG Basin needs to be exercised by June 30 this year. Since time is short and considering the developments that are taking place, particularly the exhorbitant prices being quoted for gas from Krishna-Godavari Basin, I strongly urge the Government of India to exercise the option of taking profit petroleum in kind,'' he added.

The above measure would enable the government to intervene directly to contain prices of gas in the domestic market and control inflation besides ensuring availability of fuel at reasonable prices for stranded assets in the power sector.

UNI