Indian government not planning to market RIL gas from KG basin

RIL, which currently produces around 62 million standard cubic metres per day of gas from KG-D6, sells the fuel to customers identified by the government and at rates approved by it

The Indian government is not considering taking over marketing of natural gas produced by Reliance Industries Ltd (RIL) from its eastern offshore Krishna-Godavari (KG) basin D6 fields, reports PTI.

Minister of state for petroleum and natural gas Jitin Prasada replied in the negative when suspended Samajwadi Party's member of parliament (MP) Amar Singh in the Rajya Sabha asked if the "government proposes to take over the distribution and marketing of gas (of) RIL."

RIL, which currently produces around 62 million standard cubic metres per day of gas from KG-D6, sells the fuel to customers identified by the government and at rates approved by it.

Mr Prasada said the Production Sharing Contract (PSC) like the one Mukesh Ambani company signed with the government for exploring and producing hydrocarbons from Block KG-DWN-98/3 or KG-D6, gives marketing freedom to the contractor (RIL in this case), subject to the Gas Utilisation Policy framed by the government.

"The gas produced from KG-D6 is being sold in accordance with government's priorities and decisions made by the government in this regard," he said.

An Empowered Group of Ministers (EGoM), constituted to decide issues pertaining to commercial utilisation of gas under the New Exploration Licensing Policy (NELP), has decided that the contractor would sell gas to consumers in accordance with the marketing priorities determined by the government, he added.
 

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STC eyes Rs21,000 crore turnover; to enter new areas

State-run STC is also planning to foray into new areas like port development and overseas contract farming

With a view to achieve a projected turnover of Rs21,000 crore in the next fiscal, the State Trading Corporation of India Ltd (STC) is planning to foray into new areas like port development and overseas contract farming, reports PTI.

The total turnover of the state-run trading company has been projected to reach Rs21,000 crore in 2010-11, an official statement said on Tuesday.

STC, which plays an important role in importing essential items and exporting a large number of others, had a turnover of Rs19,460 crore in 2008-09. The company's profit after tax (PAT) has been estimated to increase by about 40%.

"With a view to achieve the stated projections of turnover and profitability, STC plans to enter into many new areas of trade such as overseas contract farming in pulses, development of infrastructure at port areas," it said.

The company notched up a profit of Rs81.34 crore in 2008-09.

STC would also lay emphasis to strengthen its bullion, hydrocarbons, petrochemicals, edible oils and agricultural commodities business. It would also expand its tea operations in domestic as well as global markets.

Last week, STC signed a memorandum of understanding (MoU) with the commerce ministry in this regard.
 

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COMMENTS

Shadi Katyal

7 years ago

Profit of 40% what a surprise even the private importers dont make that much profit.How much did govt get back in taxes and what went into pockets of employees??
Is STC competing with private sector or is being still protected as in the past? Need breakdown of its activities. why is Indian consumer being charged higher prices if profits are 40%.
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'Monopoly of private operators at major ports to be curbed'

The new policy that seeks to prevent monopolies from being created at major ports would go to the law ministry for vetting once it is finalised, the Indian government has said

The shipping ministry will finalise a policy to prevent monopoly of private operators at major ports in the next one month, the Rajya Sabha was informed on Tuesday, reports PTI.

Replying to supplementaries during Question Hour, shipping minister GK Vasan said that the new policy that seeks to prevent monopolies being created would go to the law ministry for vetting once it is finalised by his ministry in a month.

The new policy includes a bar on any private operator from bidding for the next berth if it is the only operator of a berth handling a particular cargo.

Comments on the draft policy had been received from stakeholders and were under finalisation in the shipping ministry.

Mr Vasan said that the policy would apply to only major ports, and non-major ports which are under the jurisdiction of state governments would not come under its purview.

To a separate question, Mr Vasan said that the government was considering modification of the shipbuilding subsidy scheme. In-principle approval for shipbuilding subsidy for four vessels amounting to Rs23.69 crore has been granted to Alcock Ashdown (Gujarat) Ltd (AAGL).

Apart from this, requisite documents are awaited from AAGL for in-principle approval for shipbuilding subsidy for another four vessels amounting to Rs70 crore.

Mr Vasan said that a proposal to set up a dry dock at Cochin Shipyard at a cost of Rs1,000 crore was under consideration.

During the 6th and 7th Five Year Plan periods (2002-07 and 2007-12), Rs644.04 crore has been released under the shipbuilding subsidy scheme to public sector shipyards. Rs47.69 crore subsidy was given to private shipyards and Rs12.98 crore to the Gujarat government shipyard, he said.
 

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COMMENTS

Shadi Katyal

7 years ago

Why does Govt keep its paws from such interference. This is another road block to any progress. Red tape and Babudome will rule the berths or leave them sit idle while shiops are at anchorage?
Why would any private investor even spend a rupees if ther is always govt watching them. can we not learn from other nations like Singapore,HongKong etc???

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