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Presentation by MoPNG before Group of Ministers

Provisions regarding Allocation of Gas:

  • Under Article 297 of the Constitution of india, the natural gas vest in the Union of India
  • Under entry 53 in Schedule VII of the Constitution of India, natural gas is part of the Union list
  • The powers of allocation of domestic natural gas vest with Union of India
  • Government of India has been following the policy of sectoral priority in allocation of domestic gas. Broadly, at present the following order of priority has been followed in allocation of domestic gas: Gas based fertilizer plants, LPG, gas based power plants supplying power to distribution companies at regulated tariff, CGD for domestic and transport sector
  • There is no policy of allocating gas to individual states
  • LNG has been placed in Open General License category

Allocation & supply of domestic gas during 2012-13

(Figures are in MMSCMD)

Gas Type

Allocation

Supply During 2012-13

APM

119.4

49.58

Non-APM

7.81

7.02

KG-D6 (NELP)

93.336

25.74

PMT (Pre-NELP)

17.73

9.02

Ravva , Ravva Satelite & other Pre-NELP Blocks

-

2.61

CBM

-

0.23

Total

238.276

94.20

At present, the supply of domestic gas is much less compared to allocation.

Non APM Gas

  • The order of priority for sectoral allocation is broadly the same as for NELP gas
  • While maintaining the sectoral priority, preference in allocation is given to APM short fall before meeting new demand

NELP Gas

  1. The allocation of NELP gas is decided by EGoM
  2. In the year 2012-13, 25.74 MMSCMD was supplied against allocation of 93.34 MMSCMD. The production of KG D6 has further declined. No additional gas is available for allocation
  3. EGoM in its last meeting held on 23 August, 2013 has decided following:
  • To maintain the supplies of domestic gas to fertilizer sector at 31.5 MMSCMD, the level of average supply to fertilizer sector in the year 2012-13
  • During 2013-14, 2014-15 & 2015-16 the entire additional NELP gas available after meeting any shortfall of fertilizer sector will be allocated to power sector
  • The plant wise allocation of additional production of NELP gas available during these years shall be done by the Ministry of Power.

Projected additional production in MMSCMD:

 

2013-14

2014-15

2015-16

KG-D6

-

2

5

GSPC

0.589

2.16

5.24

Total

0.589

4.16

10.24

Source: SNP Infra Research