Govt may levy cess natural gas: Petroleum Secretary

The government may levy a cess on domestically produced natural gas to fund construction of gas pipeline network, Petroleum Secretary R S Pandey said on Wednesday.

The government may levy a cess on domestically produced natural gas to fund construction of gas pipeline network, Petroleum Secretary R S Pandey said on Wednesday.

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If 20 cents per million British thermal units cess is levied on gas price, in a year we can get Rs 3,000 crore, Pandey said addressing the India Energy Forum Meeting here.

The funds generated through the cess can be used for construction of 500-600 km of natural gas pipeline in a year so that a criss-cross national gas highway network is established soon.

Pandey, however, said this was only at thought stage and a proposal to this effect is yet to be moved to the government for consideration.

India currently produces about 100 million cubic meter a day of gas, including 25 mmscmd from Reliance Industries Eastern Offshore KG D-6 fields.