“This (technology and market-based pricing) is a combination that is essential to provide rapidly-growing economies like ours with energy solutions commensurate with our needs,” Singh said.
The government has envisaged a new pricing regime from April 1, 2014, which will nearly double natural gas rates to $8.2 per million British thermal unit (mBtu). Though the new rates will still be lower than the market price, the move is seen as a major reform initiative by the UPA government torn between consuming industries and energy producers and grappling with the inflationary potential of energy price hikes.
India, currently the seventh-largest energy producer in the world, needs to raise its energy supply by three-four times within the next two decades, the Prime Minister said. “India is expected to be the third-largest energy consumer by 2020.”