Sunday, June 26 2005 17:20 Hrs (IST) - World Time -

Ahmedabad: A reserve of natural gas has been found in Krishna, Godavari basin by Gujarat State Petroleum Co (GSPC), estimated to be worth Rs two lakh crores ($ 50) according to Gujarat Chief Minister Narendra Modi.

The initial testing results have indicated presence of estimated 20 Trillion Cubic Feet (TCF) of natural gas, Modi said in Ahmedabad.

The discovery would almost double the current gas production in the nation, Modi said, adding that the GSPC's priority now would be to get the gas for commercial production, bring it to the seashore and also sell it to other States enroute to Gujarat.

"GSPC starting drilling operations on July 31, 2005 spending Rs 250 crore," Modi said that, it is located 6 kms away from the shore of Yanam, Kakinada coast of Andhra Pradesh, the well was 'speeded' on January 17, 2005 and drilled upto 5061 mts (5.06 kms) at a temperature of 400 degree Fahrenheit.

Naming the project as 'Deen Dayal' (Saviour of the poor), Modi said that the State Government would invest an additional Rs 1500 crore for further developing this field to continue exploration.

To a question as to how would GSPC raise the Rs 1500 crore for the project, Modi said that with this gas find, there would be a queue of investors and the company should not face any problem to raise the amount.