Government expects a change in the industrial scenario
Hyderabad, May 2, 2008The Ramagundam unit of the Fertilizer Corporation of India (FCI) in Karimanagar district that was closed a few years ago is proposed to be revived by using natural gas that is expected to be supplied by the Reliance Industries Limited from Krishna-Godavari basin. When gas is used as fuel, the production cost of the fertilizers and correspondingly reduce the subsidy by the Union Government.
Leveraging this advantage, the State Government is planning to request the Centre to expedite re-opening of the Food Corporation of India's Ramagundam unit. The Government is anticipating a sea change in the industrial scenario once the Reliance Industries Limited begins gas supply. Apparently pleased with the Centre ruling in their favor and fixing the gas price at $ 4.33 got million metric British thermal unit that works out to Rs.7 a cubic metre, RIL officials have offered as much supply as gas as required by the State Government.
However, this officer is subject to the disposal of a case in the Bombay High Court in the case filed by the Anil Ambani group. Following the RIL's assurance, the 2,100 MW capacity power project taken up at Karimanagar has already been converted into a gas based plant. It is understood that the RIL will be in a position to meet the State's total requirement of 40 MCMD and out of this 10 MCMD each is needed for the existing and contemplated power projects. It is expected that the total availability from Krishna-Godavari basin in the next two to three years will touch 120 MCMD.
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