Mukesh Ambani: India’s precisous inventor(2)

However when such mighty effort is going on in the interests of our country, certain elements are trying to derail or delay the project. This is regardless of the truth that there is already in place a regulatory framwork like New Exploration Licensing Policy (NELP), Production Sharing Contract (PSC), Integrated Energy Policy (IEP), and ultimately Empowered Group of Ministers (EGOM). The last one, namely, EGOM had, considering all aspects, fixed $4.2 mmBtu (million British Thermal Unit) add to taxes and transport charges,as the price. Inspite of explicit marketing ( Corporate communications ) freedom promised under NELP, the EGOM first reduced the price proposed by RIL and then formulated a “Gas Utilization Policy”, under which gas would be first made available at a uniform price of $4.2/mmBtu.

Despite all the obstacles and barriers to early April of this year’s KG D6 gas flowed through the distribution network. At present prices, the gas will save the country nearly $9 billion or 10% in annual bill when production reaches its peak in a year by which time domestic gas output will double. It is estimated that gas sales will generate $ 42 billion in revenue over the 11-year life of the field and the estimated share of government is likely to be a minimum of $14 billion. It has rightly been said:

“Reliance Group ( Publicity PR ) has created history and has once again demonstrated its ability to implement complex projects at par with the best performance benchmarks in the world. The clean energy from the Dhirubhai 1 and 3 discoveries of the KG-D6 block will be a boost for energy security and growth of India.” Government has already identified the consumers whom the gas will be allocated. Even ADAG’s power plant at Samalkot in Andhra Pradesh will be one of the recipients of KG-D6 gas at government approved rates. In case that any of these customers isn’t able to make use of the full quota,the EGOM has already made a determination of allocating unutilized KG-D6 gas to such sectors as gas-based steel plants.

From then on ,assignments will be made to existing gas-fired power plants and then also to other power plants contains captive power plants relying on the usability of unutilized gas. In the allocation, priority has been given to urea-making plants, gas-based power plants, LPG extraction units, city gas projects for retailing CNG to automobiles and piped cooking gas to households. This shows the contours of distribution and customer coverage of gas from KG-D6. It is necessary to be stressed here that in tins schedule. Reliance ( Crisis communication ) which has given the nation its biggest gas discovery has not been given a single cubic metre from its own gas. This is indeed a case of sacrifice and self-denial.