Centre denies possibility of supplying APM, KG-D6 gas to Gujarat

By our correspondent, New Delhi, 27 March 2013

The central government has clearly denied gas allocation to Gujarat on Administered Price Mechanism(APM). The government has also denied possibility of new KG-D6 gas allocation to Gujarat, citing the reason of fall in production.

A member of parliament from Gujarat asked in Lok Sabha whether in National Capital Territory of Delhi and Mumbai, Compressed Natural Gas at Administered Price Mechanism (APM) rate is allocated for the transportation sector and whether the State Government of Gujarat has requested the Union Government for allocation of gas from D-6 blocks of Krishna-Godavari basin for the transportation sector in the State; and; if so, the details thereof and the action taken by the Union Government thereon.

To this, Minister of state in the Ministry of Petroleum and Natural Gas Smt. Panabaaka Lakshmi replied: “Indraprastha Gas Ltd (IGL) and Mahanagar Gas Ltd. (MGL) were allocated 2 Million Standard Cubic Meters per Day (MMSCMD) each at Administered Price Mechanism (APM) rate for supply the same as Compressed Natural Gas (CNG) to the transport sector in National Capital Territory of Delhi and Mumbai during 2002 and 2007 respectively.”

“The State Government of Gujarat has requested the Union Government for allocation of APM and KG-D6 gas for transport sector in Gujarat. However, there is no more APM gas available for allocation, and due to fall in production of KG-D6 gas, no new KG-D6 allocation has been possible.”