The Dabhol power plant in Maharashtra would get gas from Krishna-Godavari (K-G) basin on a priority basis. K-G basin is being developed by Reliance Industries in Andhra Pradesh. RIL is directed by the union petroleum ministry to sell gas at $4.2 per million British thermal unit (mBtu) after the judgment of the court. It also asked RIL to supply gas to some fertilizer plants.
 
The case is pending in court over the supply and pricing formula for the K-G gas between Anil Ambani Group Company, Reliance Natural Resources Ltd (RNRL) and Reliance Industries. The court would discuss the matter on December 11. NTPC is also in a litigation process with Reliance Industries for buying gas for two of its plants in Gujarat at a price of $2.34 per mBtu. Gas production is likely to start from the D6 block from January 2009 with initial capacity of 15 million cubic metres per day.
 
Earlier, fertilizer sector was entitled to get gas on priority basis but now power sector is being given preference. The Dabhol power plant is not producing energy at its capacity following shortage of gas and failure of its turbines. The plant is operated by Ratnagiri Gas and Power Pvt Ltd and needs about 8.4 mcmd of gas to deliver full capacity.