The petroleum ministry, coerced by the Bombay High Court, convened a meeting recently to hear out the grievances of various stakeholders over the government`s decision to impose sectoral cuts in supply of D-6 gas. The Bombay High Court had directed the petroleum ministry to hear out the contensions of two companies, Welspun Maxsteel and Ispat Industries, which had filed a writ petition asking for a stay order on the ministry`s directive to RIL to stop supply of gas from KG-D6 basin to non-priority sectors. The following major issues were raised by representatives of the steel sector:
- Welspun Maxsteel Ltd said that based on firm commitment for gas, it had entered into GSPA with RIL while the company, in turn, got into supply commitments to various end customers. It was further pointed out that the EGoM made allocations to steel sector when the production of KG-D6 gas was 40 mmscmd. In view of this, steel should be considered a core sector till gas production is above 40 mmscmd.
- Ispat Industries Ltd. said it was currently buying spot RLNG, causing a loss to the tune of Rs 73 lakh per day. The total steel sector demand for gas is 4.2 mmscmd, which is negligible in the context of overall gas availability.
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