RIL and State Government reaches understanding

RIL to establish a gas grid by June 2008

The Government of Andhra Pradesh and Reliance Industries Limited (RIL) reached an understanding on Wednesday to establish a gas grid in the State by June 2008 with minimal infrastructure facilities and begin partial supply of gas to power projects and industries. It followed three hour long discussions between the Chief Secretary J Harinarayan and RIL Resident CEO PMS Prasad.

According to this understanding, the RIL will start with a production of 40 million cubic metres per day from June and increase it to 80 later which will make it the world's single largest gas producer. The Government has been insisting that the RIL its commitment of fully meeting the needs of fertilizer plants, industries and domestic gas in the State from the production in the Krishna Godavari basin before supplying gas elsewhere.

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