Thanks to some impressive damage control on the part of Chief Minister N. Kiran Kumar Reddy, the Centre on Tuesday directed the Union ministry of power and energy to stop diversion of Reliance gas to the Ratnagiri Power Project in Maharashtra. The directive, which will enable the state to generate an additional 400 MW of power, came within a day of the CM meeting Prime Minister Manmo-han Singh in New Delhi along with a delegation of MPs from the state and pleading the state’s case.

This was Mr Kiran Kumar Reddy’s second major achievement as far as dealing successfully with the Centre is concerned, the first being ensuring the deletion of Clause 14 (f) from the Presidential Order, thus, bringing the city police under zonal regulations much to the relief of job aspirants from Telangana.

On Tuesday, after the order came through from the CMO, Mr Kiran Kumar Reddy thanked the Prime Minister and UPA chairperson Sonia Gandhi for stopping diversion of Reliance gas to Maharashtra.
Importantly, the Centre has also ordered status quo to be maintained, which means continued supply of 3.48 mmscmd of gas to the state power utilities.

Gas: CM scores over Jaipal
Sources said that Chief Minister N. Kiran Kumar Reddy on Monday had convinced Prime Minister Manmohan Singh that it would be better for Maharashtra to draw power from the Central grid rather than availing gas from AP as there was not much cost difference. The CM had also explained that while KG basin gas costs the state only Rs 2.10, it would have to spend Rs 7 per unit if it drew power from the grid and Rs 9.60 if the power utilities operated with gas supplied from the West coast.

Mr Kiran Kumar Reddy highlighted the fact that the demand-supply gap in Maharashtra was below 15 million units per day against 35 MU in AP. He also pointed out that the EGoM order on diversion had an inbuilt rider that it would come into force only when production from KG D crossed 40 mmscmd.

The CM also scored a point over Union petroleum minister S. Jaipal Reddy who had issued the diversion orders in the first place. “He (Jaipal) is claiming to have stopped diversion for 11 months. Had he held back the order by a few more hours and alerted us, the CM would have approached the PM and represented the state’s genuine case,” sources close to the CM pointed out.

In fact, earlier in the day, before the PMO's order to stop the diversion came through, Mr Jaipal Reddy had told newspersons that the Centre was thinking about providing some relief to the state and that Mr Kiran Kumar Reddy had led a delegation to the PM on Monday on his advice. “It is a fact that AP is suffering due to the decision, I will also try to help the state in this regard; a decision is expected soon to provide relief to the state,” Mr Reddy had said.

“I cannot talk like MPs on matters concerning my ministry. They (state MPs) say I am discriminating against my state while others say I am using my discretion and helping the state; but I assure the state that no injustice will be done, he said. Later in the evening, after the PMO’s orders came through, Mr Kiran Kumar Reddy said that the GOM would soon meet and implement the orders. He also added that the collective effort by the CM and state MPs had ensured that the order was rescinded.