The Hindu Business Line : Reddy reiterates plea to revise gas pricing

The letter, third such one on gas pricing, also appealed to political parties to join forces to ensure that the consumers would be the ultimate beneficiaries. Since gas production in the State is likely to commence in June 2008, it is keen that a market regulator determine the price of gas in transparent and fair manner.

Our Bureau

Hyderabad, June 29

The Chief Minister, Dr Y.S. Rajasekhara Reddy, on Friday addressed a letter to the Prime Minister, Dr Manmohan Singh, to consider revising gas prices so that they could continue to offer free power to consumers.

This letter, third such one on gas pricing, also appealed to political parties to join forces to ensure that the consumers would be the ultimate beneficiaries.

The Chief Minister, who addressed separate letters to the PM, Deputy Chairman, Planning Commission, and the Union Finance and Petroleum Ministers, said that gas from the KG Basin should be first made available to the State and it has launched efforts to create a grid to supply gas to consumers. Since gas production is likely to commence in June 2008, the State is keen that a market regulator determine the price of gas in transparent and fair manner.

Bearing the burden

Mentioning about bids of GVK, Konaseema and three other power projects in the State, the Chief Minister said that these should be rejected as they have quoted higher prices that could not be benchmarked to determine gas prices.

Ultimately, the consumers have to bear the burden as the cost would eventually be passed on.

He mentioned that Andhra Pradesh is the only State supplying free power to over 25 lakh farmers and the Government has not hiked tariffs for the past three years.

Power to farmers

The State is determined to protect the interest of farmers and continue to supply power to them by pumping in required subsidy.

Therefore, gas pricing holds the key to supply of power to farmers as more capacity would come in for supply.

The Chief Minister, therefore, called upon the Centre to create a market regulator who would determine the gas pricing, factoring interests of all consumers, particularly the farm sector.

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