Kirit Parikh wants APM gas for fertiliser companies

Vol 9, PW 16 (17 Nov 05) News in Brief

Policymakers in India are set to recommend that the government should reserve supplies of cheap subsidised domestic gas to fertiliser companies.

Kirit Parikh, chairman of the Energy Coordination Committee attached to the countrys influential Planning Commission, tells PETROWATCH, he will be making this recommendation in an eagerly awaited report on an integrated energy policy for India to be submitted by the end of December. Our aim is to produce 80% of urea within the country, Parikh tells us.

There is a need to protect the fertiliser industry to a certain level with gas supplies at a lower price. This is crucial for food security.

Parikh said power generation companies should be stripped of their right to use subsidised gas and should instead use coal. Imported coal may be a cheaper option than gas at current prices, adds Parikh.

Coal will emerge as a benchmark for power generation.