Conceding Andhra Pradesh's demand, the Centre has decided to
stop diversion of natural gas from Krishna-Godavari basin to Maharashtra.A day after a delegation, led by state Chief Minister N
Kiran Kumar Reddy, met Prime Minister Manmohan Singh in New Delhi on the issue,
the latter directed the Union Petroleum and Natural Gas Ministry to immediately
stop diversion of two million metric standard cubic meters per day (MMSCMD) of
natural gas to the Ratnagiri power plant in Maharashtra, sources in the CMO
said.The Prime Minister called the Chief Minister over phone and
conveyed the decision," a CMO official revealed.The Centre's decision comes as a relief to the power-starved
AP, where the gas-based power plants were functioning with a plant load factor
of less than 30 per cent, resulting into power cuts for several hours everyday.The industries are the worst hit, as they are forced to
follow a three-day power holiday every week due to scarcity of electricity.It may be recalled that the Union Ministry of Petroleum and
Natural Gas issued an order for diversion of two MMSCMD gas to Ratnagiri power
plant, cutting into the supplies to Independent Power Producers in AP.As a result of the gas diversion, the IPPs in AP would have
got only 1.48 MMSCMD of gas, resulting in a drop in power generation by 400 MW.Centre's decision created a storm in the state with
opposition parties demanding the resignation of Union Petroleum and Natural Gas
Minister S Jaipal Reddy, who hails from the state.The Prime Minister, however, assured the CM-led delegation
that the decision on gas diversion would be reviewed and accordingly he issued
a fresh order this evening, a CMO official said.
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