'Governmental oversight essential for energy prices'

Prime Minister Manmohan Singh today said remunerative energy prices are essential for expanding supplies but at the same time governmental and regulatory oversight are essential.

Prime Minister Manmohan Singh on Friday said remunerative energy prices are essential for expanding supplies but at the same time governmental and regulatory oversight are essential.

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"The government has initiated gas-pricing policy reforms to incentivise production of natural gas. We are conscious that remunerative energy prices are needed to ensure expanded energy supplies," Prime Minister said at the Asia Gas Partnership Summit in New Delhi.

"At the same time, oil & gas are natural resources and therefore should be within the framework of governmental and regulatory oversight. The economic exploitation of these resources should lead to a win-win solution for both investors as well as the people of India," he added.

He said the government was committed to taking steps to find viable solutions to meet concerns of the gas industry.

"We are committed to ensuring the predictability and transparency of our policy and regulatory environment," he said.

The Prime Minister said India's gas demand has grown by 14% in past five years and the country has attracted $14 billion in investment in the oil and gas hunt under the New Exploration Licensing Policy.

On the use of new sources of energy, he said Shale gas licensing regime will be in place by 2013.