RIL's D-6 gas price to be comparable with imported coal

New Delhi, July 10 (UNI) Reliance Industries Ltd (RIL) Chairman Mukesh Ambani today said the gas from its KG-D6 Block will be sold at a cheaper rate than the currently available price of fuel like Naptha and CNG and would be comparable with that of imported coal.

The elder of the two Ambanis who met top government officials and the Committee of Secretaries (COS) formed on the vexed issue of pricing of natural gas from its KG basin said Reliance's KG-D6 block can help cut the fertiliser subsidy burden by replacing the costly naphtha and other fuels used by fertiliser makers.

The Prime Minister had earlier accorded top priority to the fertiliser sector and suggested to the power ministry to switch to coal instead of using gas to fire their turbines. The Prime Minister has said that any pricing formula must be consistent with the provisions of pricings in the Public Sector utilities.

Moreover, the whole rejig process has to encourage competition, the PM had said.

Mr Ambani met the Committee of Secretaries (COS) formed for gas pricing. He met Expenditure Secretary Sanjiv Mishra, Fertiliser Secretary Sreedhara Sharma, Principal Secretary to the Prime Minister T K A Nair and Cabinet Secretary K M Chandarshekar.

He also met Planning Commission Member (Energy) Kirit Parekh on the issue of arriving at a regulated gas price.

In his presentation, he said the gas would be priced at 4.33 dollars per million British thermal unit (MBTU) as the government revenues at this tariff can compensate for rise in fertiliser subsidy.

UNI