According to a government official, the 220-MW power plant has been assigned 0.19 million cubic meters per day of KG-D6 gas at government approved rates of $4.20 per million British thermal unit including taxes and transportation.
Though RIL was assured marketing freedom when it was awarded the KG-D6 block in Bay of Bengal in international tender, it has been stripped of all its rights and is being compelled to sell the fuel from its discoveries it made in the block to clients spotted by the government.
RIL has already signed gas sales agreements with six power plants in Andhra Pradesh and I believe they would be doing the same with Samalkot next week, the official said.
Samalkot combined cycle power plant is owned by Reliance Energy Limited, ADAG.