Advertisement

HindustanTimes Fri,26 Dec 2014

Moily denies favouring pvt firms in gas pricing

HT Correspondent, Hindustan Times  New Delhi, May 24, 2013
First Published: 22:41 IST(24/5/2013) | Last Updated: 22:43 IST(24/5/2013)

Petroleum Minister Veerappa Moily on Friday refuted allegations levelled by CPI MP Gurudas Dasgupta that the proposed revision in gas pricing was being done to benefit private sector players such as Mukesh Ambani-led Reliance Industries.

Advertisement

Terming it “completely misconceived”, Moily said, “Some baseless allegations made by the Member are not only devoid of merits but are malicious and based on distorted facts.”

A petroleum ministry statement said the government of India had constituted a committee under C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, in May, 2012 to suggest the structure and elements for formulating the price of domestically produced gas.

The committee submitted its report in December, 2012 and the petroleum ministry is in the process of finalising a note to be placed before the Cabinet Committee of Economic Affairs for a decision.

The proposed guidelines will be effective from April 1, 2014.

“It is needless to emphasise that views of the other ministries and the planning commission shall be part of the proposed Cabinet note, and will be placed before the Cabinet for consideration,” the statement by Moily said. The proposed guidelines would be equally applicable to both private and public sector companies, it said.

More than 60% of the natural gas in India is produced by public sector companies. Therefore, the allegation that the
price is being revised for the benefit of the private sector is completely misconceived, the statement said.

The statement added that majority of the gas presently under production are pertaining to the blocks allotted under various rounds of NELP and governed under the production sharing contract signed between the government and the gas producers, and the methodology suggested by the Rangarajan Committee is aimed at fulfilling the contractual obligations under the PSC.


Advertisement
more from Business

Ajay Singh-led group to invest $217 mn in SpiceJet

A consortium of investors led by SpiceJet co-founder Ajay Singh is likely to invest $217 million (Rs 1,378 crore) to pick a substantial stake in the embattled airline, sources told HT.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved