Govt orders RIL to supply KG-D6 gas to core sector only
The oil minister has ordered Reliance Industries to stop KG-D6 gas supply to non-core users. The reason being a sharp decline in the production from the block.
April 27, 2011 / 09:27 IST
The oil minister has ordered Reliance Industries to stop gas supply from Krishna Godavari (KG) D6 to non-core users. The reason being a sharp decline in the production from the block.
The ministry has asked the company to first meet full demand of fertilizer and power plants. This means the company needs to cover only the core sector at the moment. The news has hit the stock, but fertilizer and power stocks have reacted postively. The RIL management did indicate in its analysts meet that they will drill more wells. The RIL numbers were sub-par and the oil ministry has apparently reiterated that it can supply oil only to core sectors of the economy. CNBC-TV18
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