Allocate 50% of natural gas produced in KG Basin to Andhra Pradesh, demands CPI(M)

The CPI(M) has demanded that 50% of the natural gas produced in the Krishna-Godavari (KG) Basin be allocated to Andhra Pradesh, citing long-standing recommendations and the State’s ongoing energy challenges.

Addressing the media here on Sunday, party State secretary V. Srinivasa Rao said the 12th Finance Commission had recommended that half of the oil and gas produced in a State be allocated to that State.

Hence, the Andhra Pradesh government should mount pressure on the Union government to secure its rightful share, he said.

In the past, the KG-D6 gas fields were allocated to the Reliance Industries, resulting in a loss of control over valuable resources. “Gas is being diverted to other States and even exported, while Andhra Pradesh continues to face shortage. If the State receives its fair share, LPG cylinder prices, currently around ₹900, can fall to nearly ₹300, while piped natural gas (PNG) will become more affordable,” Mr. Srinivasa Rao said. 

A severe shortage of cooking gas was affecting households, hotel operators, and small businesses. Despite significant production in the KG Basin, he alleged that the State had not been able to utilise its own resources effectively.

On public transport, he opposed privatisation of electric bus operations, urging the government to directly run EV services.

He also raised law and order concerns in Akiveedu in West Godavari, demanding a judicial inquiry and protection for vulnerable communities.

CPI(M) Central Committee member K. Lokanatham criticised both the State and Central governments for extending “undue concessions”  to the ArcelorMittal-Nippon Steel plant in Anakapalli, alleging that it could undermine the public sector Visakhapatnam Steel Plant. “While large subsidies are being offered to private players, similar support is not being extended to public sector industries,” he said.

The party welcomed the Legislative Assembly’s resolution seeking legal status to Amaravati, but sought clarity on boundaries and funding.