Adani sells PNG for Rs51.25 in Khurja

Vol 16, PW 23 (13 Jun 13) News in Brief

Ahmedabad-based Adani Gas will finally begin gas supplies to the pottery town of Khurja in Uttar Pradesh by June 25.

Adani earlier planned to begin Khurja operations in March but hadn't signed Gas Supply Agreements (GSAs) with factories. Over the past two months, Adani has signed GSAs with seven pottery and ceramics factories for 12,000 cm/d of gas at Rs 51.25/cm ($0.88).

These GSAs are valid until March 31, 2015, and can be extended. “We'll sign GSAs with another eight customers in a week,” says a company source.

Among Adani's customers are Chhatwal Ceramic Industry, Manhas Pottery, and Silico & Chemico Porcelain Works. Adani is also talking to state sales tax authorities to get a preferential VAT rate of 5% against the current 26.5%.

“GAIL Gas sells gas in Ferozabad at 5% VAT,” we are told. Adani forecasts it can sell 50,000 cm/d in Khurja in three years, shooting up to 250,000 cm/d in five years.