“Gas price hike to cost Gujarat’s gas-fired power plants Rs 9485 cr, gas-based fertilizer plants Rs1985 cr extra”

Gandhinagar, 2 July, 2013

Gujarat’s Energy Minister Saurav Patel today strongly opposed Congress-led UPA Government’s Cabinet sudden decision to raise gas price from $252 to $504 per MMBTU which would break the backbone of inflation-hit farmers and common man. It is a great injustice to stifle states like Gujarat using gas for power generation. This would push the nation to darkness, adversely affecting the country’s economy, he said.

Commenting on the Centre’s decision, he said the decision shows the UPA Government’s all round failure as the price is likely to increase by 20 per cent as per new quarterly formula due to devaluation of rupee. It would result in gas-based fertilizer companies raising the prices of fertilizers which farmers might not be able to tolerate.

Mr. Patel said the decision would increase the power generation cost from Rs.3.01 to Rs.5.24 per unit and put additional burden of Rs.9409-crore on ten gas-fired power plants producing 2,623 MW power and Rs.1,985-crore on gas-based fertilizer plants in Gujarat. These plants also do not get adequate quantity of gas.

He criticized the UPA Government’s economic policy with a view to taking the country to bankruptcy. He wondered as to why Congress party leaders from Gujarat are silent at the great injustice inflicted on Gujarat.