(a) whether the Government has approved the hike in project cost of Reliance Industry
Krishna Godavari Gas fields;
(b) if so, the details thereof alongwith the details of the amount approved previously as the project cost;
(c) the criteria adopted for assessing the project cost; and
(d) the impact of this increase on retail power tariffs?
MINISTER OF THE STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI JITIN PRASADA)
(a)&(b): The Field Development Plan of D1 & D3 gas discoveries in the block KG-D6 (RIL-NIKO) was approved by
the Management Committee as required by the Production Sharing Contract (PSC).The investment is estimated to
increase from US $ 2.5 billion approved in the Initial Development Plan to US $ 8.8 billion as per the Revised
Development Plan. The increase is on account of increase in production volume, corresponding increases in
production facilities and number of wells, and increase in global price level for E&P services.
(c): The estimated investment proposed by the Contractor was assessed based on the type and size
of the production facilities, pipelines and number of wells to be drilled and completed etc.
(d): Under New Exploration Licencing Policy PSCs, pricing of gas is not linked to the cost of production
of gas and therefore, change in project cost has no direct relationship to price of gas.