Mukesh Ambani-led (RIL) has acquired 67 per cent stakes in Krishna Godavari Gas Network Ltd (KGGNL), promoted by the Andhra Pradesh government. KGGNL is a joint venture between Gujarat State Petroleum Corporation (GSPC), IDFC Private Equity Company Ltd and the state-owned Infrastructure Corporation of Andhra Pradesh (Incap), formed for distributing gas in various cities across the state.

The state economic adviser, D Somayajulu, said that the officials of RIL, an arm of RIL, are meeting Chief Minister Rajasekhara Reddy between August 11 and 14 for signing shareholders' agreement. He said that state chief minister Mr. Reddy wants early execution of the project, estimated at Rs 1,00,000 crore including Rs 3,500 crore for gas distribution in Hyderabad.

Reliance Industries Ltd has already started selling gas from the K-G basin since March 24, and is serving AP's fuel-deficient power plants, supplying 7.7 million metric standard cubic metres of gas per day (mmscmd) to the state as allocated by the Empowered Group of Ministers (EGoM).

The state government has approached the EGoM for permanently allocating additional 2.3 mscmd of gas, temporarily used by the power plants of the state.