Date:30/01/2008 URL: http://www.thehindu.com/2008/01/30/stories/2008013058810300.htm

Andhra Pradesh

Share in K-G basin reserves demanded

Staff Reporter

Kakinada: The Krishna-Godavari Basin Gas Sharing Struggle Committee has appealed to Prime Minister Dr Manmohan Singh to ensure that justice is done to the people of Andhra Pradesh whose rightful share of the oil and gas reserves in the K-G basin are proposed to be exported to other States without first meeting the local needs.

In a memorandum sent to the Prime Minister, a copy of which was released to the media here, committee convener A. Vijayalakshmi and members Y. Savithri Devi, T.S.L. Nayakar, N. Usha Rani, N. Srinivas, T. Rajyalakshmi and V. Subba Rao have stated that the discovery of large resources of natural gas and oil in K-G basin kindled the hopes of the people of coastal Andhra Pradesh that alternatives to LPG and domestic fuel would be available at cheaper prices. The oil and gas discovery was also expected to trigger the development of gas-based industries in the region.

But, the fact that a major share of the oil and gas found in the K-G basin was sought to be exported to other States, shocked the people of Andhra Pradesh.

Spurt in gas prices

In such an eventuality, Andhra Pradesh will be forced to obtain its share of the gas at international prices, which is detrimental to the State and causes a spurt in the price of gas for the people of Andhra Pradesh.

Therefore, the Prime Minister should use his good offices to protect the right of Andhra Pradesh over the oil and gas reserves in K-G basin. The committee demanded allocation of adequate quantities of oil and gas to Andhra Pradesh.