No change in gas price for RIL before 2014
The government has said there is no shift in its position on the price of natural gas from the Krishna-Godavari basin’s key field, HT reports.business Updated: Nov 21, 2012 22:02 IST
The government has said there is no shift in its position on the price of natural gas from the Krishna-Godavari basin’s key field.
There will be no immediate revision in the price of gas being produced by the consortium of Mukesh Ambani-led Reliance Industries Ltd (RIL), BP and Niko Resources from India’s largest gas producing field, the KG-D6, situated off the eastern coast.
“No revision of gas price can be considered before 2014,” a statement from the petroleum ministry said, following some reports that the ministry under Veerappa Moily has withdrawn a note moved by his predecessor Jaipal Reddy that the price revision will take place in 2014 and not before that.
The shifting of Reddy from the ministry caused a controversy, with opposition criticism that it was done to please RIL and there may be a shift in the government stance. The government has denied the charge.
“It is reiterated that request of RIL regarding revision of price was rejected in October, 2010 itself...,” the ministry statement said, adding reports of a price revision now were “baseless and frivolous”.
The ministry said the Rangarajan committee was constituted in July 2012, much before the assumption of charge by the present minister, on the issue.
It said a note for the Empowered Group of Ministers regarding the price revision was submitted to the Cabinet secretariat on September 19. The note was put up again to the new minister to get a fresh approval for resubmission, and did not amount to a withdrawal, it clarified.