Huge Energy Resource for India (KG Basin)

According to RIL's CEO and President (Oil & Gas) PMS Prasad RIL's gas production from the Krishna-Godavari basin will reduce the government's fertiliser subsidy bill, for many power projects in Andhra Pradesh and Maharashtra, (Dabhol power plant), RIL gas will provide a new lease of life. And its usage in fertiliser production can reduce fertiliser subsidy
**India is an energy deficit economy, it is estimated that the transfer of wealth from India to the oil exporting nations amounted to $56 billion in 2007-08.
In addition to this, the government incurred a subsidy of $18 billion on petroleum fuels, and another $1.8 billion on LPG usage in 2007-08.
The subsidy bill on fertilisers, around $7 billion in 2007-08, is expected to touch $20 billion in FY 2009.
Peak production of oil and gas from KG-D6 is expected to be 5,50,000 barrels of oil equivalent per day which will account for about 40% of India’s total oil and gas production and will save wealth transfer of $10 billion. The peak 80 MMSCMD of gas production will eliminate a major portion of the current shortfall in gas availability in India.
The usage of gas as CNG will cut subsidy bill on transportation fuels. D6 gas usage in fertiliser production can reduce fertiliser subsidy.

**There is a shortfall of over 100 mmscmd. The KG-D6 field is expected to have a peak production of 80 mmscmd, which means that a major portion of the current shortfall in gas availability can be met once KG-D6 production reaches its peak.
Going by the current shortfall faced by the power and fertiliser projects and their connectivity to gas pipelines, around 30-35 mmscmd of KGD6 gas would go to the power sector and around 15-20 mmscmd would go the fertiliser sector.
Supply of 35 mmscmd gas to the power sector would result in increase in generation by around 8,000 MW of power.
Supply of 20 mmscmd gas to the fertiliser sector would deliver in increase in urea production of nearly 10 million tones per annum, which will result in total elimination of imports of urea in India.
Supply of gas to the power and fertiliser sector will also result in lower dependence on imported LNG for these plants. For example, 1 MMSCMD of gas can save Rs 550 crore per annum in transportation fuel subsidies for diesel alone. The benefits for petrol would obviously be higher. Similarly, the efficiency of distributed power is more than 70% and usage of 1 MMSCMD for distributed power generation can save Rs 500 crore per annum.