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Government May Reduce Gas Supply to Non-Priority Sectors

  • The government plans to further reduce gas supply to non-priority sectors to meet the demand of fertiliser and power plants that are suffering because output from Reliance's D6 field has fallen sharply, official sources said.
  • Gas supply from the D6 block has already been stopped for customers in sectors such as steel, refineries, metals and petrochemicals on the basis of the gas utilisation policy that gave top priority to fertiliser, LPG and power plants in allocation of gas from Reliance's field.
  • The government officials said the oil ministry has now told the prime minister's office (PMO) that if the EGoM is empowered to look into gas supplies from fields other than Reliance's D6 block, gas supply from ONGC and other sources to non-core sectors could also be diverted to power and fertiliser plants.
  • Earlier, the PMO had asked the oil ministry to place before the EGoM a letter from Reliance Power seeking 9.6 mmscmd gas for its Samalkot plant in Andhra Pradesh by diverting gas from existing customers of non-core sectors.
  • A delegation of industrialists in the power sector raised the issue of diverting gas from non-core customers during their meeting with Pulok Chatterji, principal secretar

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