Date:21/11/2006 URL: http://www.thehindubusinessline.com/2006/11/21/stories/2006112104351900.htm

Reddy allays fears on K-G gas reserves

Our Bureau

Hyderabad , Nov. 20

Mr Mukesh Ambani, Chairman and Managing Director of Reliance Industries, is likely to visit Andhra Pradesh in two weeks to sign a pact with the Andhra Pradesh Government with regard to usage of gas.

Addressing a press conference here on Monday, the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, allayed fears that the huge gas reserves in the Krishna-Godavari basin would be piped out of Andhra Pradesh.

"There is no need to worry. The gas will go out from the State only after meeting the local requirements," he said.

PACT IN OFFING

He said Mr Ambani was expected to be here in two weeks to enter into an agreement in this regard. He, however, did not elaborate on the nature of agreement.

Mr Ambani, who attended an international meet on Exploration of Geophysicists held here recently, had indicated that the gas would first be offered to the consumers in Andhra Pradesh once production started. The company hoped to extract gas and supply early in 2008.