‘Cheaper gas can cut subsidy bill by Rs 2,000 cr’ | business | Hindustan Times
Today in New Delhi, India
Mar 24, 2017-Friday
New Delhi
  • Humidity
  • Wind

‘Cheaper gas can cut subsidy bill by Rs 2,000 cr’

business Updated: Aug 06, 2009 21:51 IST
HT Correspondent

Reacting to the statement by petroleum minister Murli Deora in Parliament that at the current gas price of $4.20 (Rs 195) per unit the country would save Rs 3,000 crore on fertiliser subsidy, the Anil Ambani controlled ADAG group said that this subsidy savings could be more than Rs 5,000 crore if the gas was priced at $2.34 (Rs 109) per unit, as quoted by Mukesh Ambani’s Reliance Industries Ltd (RIL) and finalised through an international competitive bidding conducted by NTPC.

ADAG said while the APM (administered or controlled) price of the gas is $2 (Rs 93) per unit, the selling price of RIL is $4.20 per unit, which is more than double the APM price.

It further said that while global crude prices have come down by over 55 per cent and gas prices by over 75 per cent since July 2008, the price of RIL gas has gone up by over 20 per cent in rupee terms as the price is denominated in US dollars.

“While petroleum minister on Monday, made a statement on the floor of the House that gas production from KG D6 is 31 mmscmd, today he has made a statement that the production is 35 mmscmd,” the ADAG statement said.

“This clearly confirms our view that the contractor is hoarding gas and only public scrutiny and comments are succeeding in putting pressure on the contractor to increase production.”