Gujarat Government which owned the Liquefied Natural Gas (LNG) in Krishna Godavari Basin has agreed to supply 1.6 million metric square cubic metres of gas every day, with which the state will generate 300 MW power. The deal betwen Gujarat State Petroleum Corporation (GSPC), a Gujarat state-owned company and Andhra Pradesh government is inked.
The timing of the deal will be of immense help to Andhra Pradesh as all the southern states are desperately scouting for gas supplies to cater to the increasing power demand in summer. Telangana also approached GSPC for the gas supply but Andhra Pradesh Chief Minister chandrababu Naidu with his contacts at the center managed to swing the deal in AP’s favour.
In fact, GSPC is offering gas at a lower rate than what was quoted by the Gas Authority of India (Gail). This gas suppply is valid for the entire Summer and will be extended to June in case the monsoon is delayed.
