The state government is also proposing to approach the petroleum regulatory board to grant the permission for setting up CGD to KGGNL and Bhagyanagar on nomination basis.

Reddy hoped that once the CGD network is created, the prices of gas would come down by 40 percent.

YSR, as the chief minister is popularly known, was satisfied that Reliance Industries was presently supplying 10 million metric standard cubic metre per day (mmscmd) for gas-based power projects in Andhra Pradesh, meeting the state's present requirement.

He said the state was also making all efforts to get another 8.5 mmscmd of gas required for the 2100-MW power project coming up in Karimnagar district.

Out of four companies which were awarded various blocks in the KG basin by the central government, only Reliance Industries has started gas production.

Reliance Industries started supplying gas from the first week of April beginning with five mmscmd.