Naidu fails to secure cheaper price for Ravva gas

Vol 7, PW 1 (26 Mar 03) People & Policy

ANDHRA PRADESH chief minister Chandrababu Naidu will be sorely disappointed.

We understand ministry officials have rejected his impassioned plea to force GAIL to slash the price of gas sourced from the Cairn-operated Ravva satellite gasfields. A source tells PETROWATCH of an early March letter from Naidu to oil minister Ram Naik on the issue.

"It is reported that the government of India has recently taken a decision to permit GAIL to charge higher prices for part of the gas it supplies to power projects in Andhra Pradesh from the Ravva Oil and Gas Field," writes Naidu.According to Naidu, his government has been crying itself hoarse against any unilateral decision to increase gas prices and he demands "immediate intervention" from Naik and "necessary instructions to GAIL not to increase the price of natural gas." Sadly for Naidu his government will have to continue lobbying for because Shastri Bhawan shows no sign of giving in and backs its position with crisp free-market logic.

"The additional production from the Ravva satellite fields are not part of the administered pricing mechanism (see: