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India's largest private sector firm Reliance Industries Ltd (RIL) has signed the gas sale and purchase agreements with 11 power plants including Reliance Infrastructure. RIL will supply the gas from its KG-D6 block. The duration of the agreements is five years and the gas price will be decided according to the government-approved formula. Under contracts, RIL will supply a total of 11.0 million standard cubic meters (mmscmd) natural gas to 11 different power plants.
Reliance Infrastructure’s Samalkot plant will get 0.95 mmscmd of gas. The plants will get the gas supply through the East-West Pipeline of Reliance Gas Transportation Infrastructure Limited (RGTIL) and pipelines of GAIL and GSPL. Commenting on the newly signed agreements, PMS Prasad of RIL said that the company is happy for entering into gas supply agreements with players in power sector. According to him, RIL is considering to enter into agreements with other customers in this sector.
Mukesh Ambani-led Reliance Industries is the largest private sector conglomerate in India. Apart from oil-related operations, the company is engaged in diversified businesses including garments and fresh food products. The lion's share of RIL's revenue comes from petroleum refining and petrochemicals.
