Home » Business » Oil Min proposal on gas prices rejected
The ministry had sent a draft proposal for the consideration of the Empowered Group of Ministers to price all domestically produced natural gas -- be of state-run ONGC or private sector Reliance Industries - as per the formula suggested by the Rangarajan Committee.
The Cabinet Secretariat returned proposal saying that the new pricing formula, which would have led to prices going up from current $4.2 per million British thermal unit to about $8, was not covered under the EGoM's terms of reference.
"As the. . . EGoM is mandated to consider and decide issue of commercial utilisation of gas (produced from blocks) under New Exploration Licensing Policy (NELP) and other related matters, the present proposal will not be covered by the mandate of the EGoM," the Cabinet Secretariat wrote to Oil Ministry on April 2.
The EGoM was originally constituted in 2008 to consider commercial utilisation of natural gas RIL had planned to produce from eastern offshore KG-D6.
The ministerial panel, which was headed by the then External Affairs Minister Pranab Mukherjee, decided to
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