Friday, May 23, 2008
Centre’s Nod to Petro-Chem region in Andhra Pradesh
Hyderabad, May 22: The Centre has approved the first Petro Chemical Investment Region in the country to be set up between Visakhapatnam and Kakinada. A high-level official committee — headed by the Union Cabinet secretary, Mr M. Chandrasekhar, met at New Delhi on May 21 and cleared the state's proposal.
Though the committee was supposed to give a green signal to the proposal last week, the meeting was postponed due to Jaipur blasts. “The committee gave the approval and the same would be put for the Cabinet’s clearance,” the managing director of the Andhra Pradesh Industrial Infrastructure Corporation, Mr B.P. Acharya, told this correspondent. The Petro Chemical Investment Region will be set up in 74,000 acres and the projected investment in the region is Rs 3 lakh crore.
Source: Deccan Chronicle - May 23, 2008
Though the committee was supposed to give a green signal to the proposal last week, the meeting was postponed due to Jaipur blasts. “The committee gave the approval and the same would be put for the Cabinet’s clearance,” the managing director of the Andhra Pradesh Industrial Infrastructure Corporation, Mr B.P. Acharya, told this correspondent. The Petro Chemical Investment Region will be set up in 74,000 acres and the projected investment in the region is Rs 3 lakh crore.
Source: Deccan Chronicle - May 23, 2008
Reliance gas production put off
Decision is because of operational problems
RIL from KG basin gas field expected to produce 80 mcm
The company holds a 90 per cent stake in the D6 block
Rajahmundry: Mukesh Ambani’s Reliance Industries which struck huge gas from its D6 block in the Krishna-Godavari basin in the Bay of Bengal and set to go for production from July has postponed its plans to the year-end.
After entering into an MoU with GAIL (India) for distribution and transportation it has finalized to start production in July and proposed to invest $ 5.2 billion in its facility.
As per Reliance Industries sources, the RIL is not in a hurry to start production immediately in KG Basin as it has encountered some operational problems onshore. The RIL is also having some tie-up problems with Andhra Pradesh, Gujarat & other states in distribution of gas.
The RIL from its KG basin gas field is expected to produce 80 million cubic meters (2.8 billion cubic feet) of gas per day, out of which it will take around 60 million cubic meters to its Gujarat and rest of 20 million cubic meters will be given to its customers in Andhra Pradesh.
Reliance Industries believes that there are reserves of more than 14.5 trillion cubic feet in the D6 block. The company currently holds a 90 per cent stake in the deepwater D6 block. The remaining 10 per cent is owned by Canada-based company Niko Resources.
DistributionAs per Reliance sources, at present the ONGC, Cain Energy and others have a tie-up with GAIL (India) for distribution of gas which they are producing from KG Basin. The distributor’s network in Andhra Pradesh includes NFCL (Kakinada) 2 million cubic meters per day, Lanco, Vijayawada 1.5 mcm, GVK 1.00 mcm, REL, APGPCL, Spectrum, Regency Ceramics, Dloex, Rolex paper mills, Andhra Sugars and so on. “All put together there will be around 38 to 40 customers for us.
They need a maximum of 17 million cubic meters per day. But, now they are getting only 7 million cubic meters a day”-said GAIL sources. The Reliance Industries currently produces a wide range of products, ranging from polymers to petroleum to garments.
The Reliance is also planning to have a tie-up with Bhagyanagar Gas Company Limited for opening CNG outlets in Hyderabad, Vijayawada and Visakhapatnam in first phase and Rajahmundry, Tirupati, Kurnool, Nellore and Karimnagar in second phase.
Friday, May 9, 2008
Hindujas keen on AP refinery
New Delhi, May 8: The Hinduja group plans to go ahead with Rs 25,600-crore refinery at Kakinada even if its indecisive project partner Oil and Natural Gas Corporation (ONGC) opts out. “We have given in writing to the Andhra Pradesh Chief Minister that we are keen to set up the project, with or without ONGC,” Hinduja Group chairman G.P. Hinduja said.
ONGC had put a slew of conditions, including the state government giving 950 acres of land free of cost, sales tax exemption and fiscal concessions equivalent to a Special Economic Zo-ne (SEZ), for setting up the 15 million tonnes refinery-cum-petrochemical project at Kakinada.
The concessions would cost the state government about Rs 16,000 crore. Even if ONGC were to join the project, the London-based Hinduja group is keen to take a majority stake, he said. However, Hinduja was optimistic about the economic feasibility of the project and said the Group has also informed the state government of the source of crude oil for the refinery. After the exit of Mr Subir Raha, whose had drawn a blueprint to catapult ONGC to become second largest refiner in the country, ONGC has fettered away the downstream expansion plans and the new management has taken a dim view of the Kakinada project.
It also wants the stated to give free power and water to the project, provide road and rail connectivity, develop sewage and refinery effluent disposal system and give communications connectivity to enhance the 10.27 per cent return on capital currently. After his exit from ONGC, Mr Raha joined Hindujas and soon after the automobile-to-banking group evin-ced interest in picking a majority stake in the Kakinada refinery project
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