The Hindu Business Line : AP Govt flays GAIL for delay in gas supply

THE State Government has criticised GAIL India for delaying tapping of huge gas findings in the Krishna-Godavari basin. The delay has been putting "severe burden" on States.

Addressing reporters here on Thursday, Mr K. Rosaiah, Minister for Finance, said power plants and industrial units based on gas suffered due to the failure on part of gas companies.

He also criticised the gas companies for not honouring their promises on gas supply to the units. "They should have an idea on gas flows. Basing on their commitment, we enter into agreements. And when they fail to supply enough gas, we are facing the music," Mr Rosaiah said.

He said the companies were supplying far short of the gas needs of several plants. "We are being punished for this," he pointed out.

"It is their moral responsibility to honour their commitment," he said.

The Minister alleged that the gas companies were not attempting to tap gas, hoping to get more revenues. "Gas should not be a trading option," he observed.

"We have taken up this issue with GAIL and the Prime Minister. It is not because of lack of funds. They (GAIL) have enough capital strength to carry on gas tapping," he said.

Briefing newsmen on the highlights of the just concluded South Zone meeting where representatives of four Southern States and Pondicherry participated, Mr Rosaiah said the State had proposed that there should be a regulatory mechanism to decide gas and coal prices.

Stating that the meeting was held early this week after a gap of eight years, Mr Rosaiah said Andhra Pradesh had proposed that the Southern States should cooperate with each other with regard to growing violence in the region.

The meeting had decided that there should be time-bound mechanism to respond to specific requests from neighbouring States.

The next meeting of the zone will be held in Chennai.

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