New Delhi

Defending the Gujarat government’s expensive KG basin gas project, Finance Minister Arun Jaitley today said international consultants have certified that the block holds 14.4 Trillion cubic feet of gas reserves, thrice the size of Reliance’s KG-D6 block.

Replying to the debate on Finance Bill in Rajya Sabha, he said gas reserves in Gujarat State Petroleum Corp’s (GSPC) KG-OSN-2001/3 block in Bay of Bengal was not 21 Tcf but 14.4 Tcf as certified by international agency Gafine Cline Associate (GCA).

Narendra Modi, as chief minister of Gujarat in 2005, had announced the GSPC discovery as holding in place reserves of 21 Tcf.

The Directorate General of Hydrocarbons (DGH) has certified Deen Dayal West, the name given to the KG#8 find of 2005, to hold 1.8 Tcf of reserves. GSPC had planned to start production from Deen Dayal West by 2013 but the project has not yet started commercial production.

This had led to opposition Congress of alleging a scam in the Rs 20,000 crore, most of it borrowed from public sector banks, being spent by GSPC in the KG project.

“International certified agencies have now certified it is not 21 Tcf, it is not 1.1 Tcf as you mentioned, at least international respected agencies have certified that 14.4 Tcf is available in that particular field… That there is 14.4 TCF is certified by one of the most respectable international agencies Gafine Cline Associate,” Jaitley said.

He said exploration is a risky business where well drilled may yield nothing.

These, he said, are very high investment projects. “You may waste all money in five places and in sixth place you may get it.”

Stating that BP of UK, Reliance Industries and state-owned ONGC are exploring in KG Basin, the Minister said banks lend money to “everyone”.

He indicated that banks lent money to GSPC on strength of 21 Tcf of reserves originally talked about.

“Banks lend money, they lend to everyone… money are owed to bank is good thing but if NPA are owed then it is a bad thing… Banks lend for growth…in this case where 21 tcf is anticipated (money was lent),” he said. PTI

Jaitley asked Tapen Sen (CPM) to at least give credit to his government that it brought down the gas of natural gas from USd 8.49 per million British thermal unit fixed by the previous UPA government to USD 3.5.