“The decision was taken because RIL did not adhere to the timelines for appraisal, commerciality and field development plan,” Oil Secretary said.
"The limit for subsidised cylinders should be reduced from the present 9 to 6 cylinders per annum to each household," the report says.
Companies also plan to raise diesel prices by 50 paise per litre, but it is under tacit pressure of the ruling UPA government to skip the hike this time.
In an unusually stern note, Moily admonished bureaucrats for damaging investor sentiment, risking the credibility of the ministry, which is seeking investments in the oil and gas sector.
Rs 7,800-crore investment plan to rejuvenate its operations with fresh technology and infrastructure in 2008.
Veerappa Moily has allowed exploration firms to immediately start oil and gas production from a discovery without spending months to get the field development plan approved.
"An in-principle decision has already been taken to exempt Gail from sharing oil subsidy.But, ONGC and Oil India will continue to contribute.
Cairn India has reported an 8% increase in its net profit at Rs 3,385 crore in the second quarter because of higher output from its Rajasthan oilfield.
The finance ministry has sought cost and output details fields which are supposed to be commercially unviable at the current price of $4.2 per unit.
The appointment of a consultant was on the agenda of the management committee of the KG-D6 block this month, but govt officials rejected the move.
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