India’s gas supply is expected to get a boost from coal bed methane (CBM) after the government removed uncertainty over its pricing.
Other than the power ministry, all other departments have proposed a gas price, which is $6.77 per unit or more.
"There are people with vested interest who do not want us to reform our energy sector so that we remain dependent on imports."
Moily claimed “import lobbies” are against raising gas prices as this would incentivise oil firms to raise domestic output and reduce India’s dependence on imports.
"Certain lobbies are obstructing Govt's move to raise domestic gas prices because they do not want India to reduce import dependence", Moily said.
To be modelled on the lines of infrastructure financier IIFCL, the proposed SPV will explore all routes, including issue of long-term bonds.
OIL too felt such an announcement was at least a couple of days away and should have been done only when the requisite agreements had been signed.
Tripura has asked the oil ministry to revive the decade-old coordination committee to resolve issues related to the development of gas fields.
The Cabinet note reiterates the government's strategy to have a globally competitive gas pricing policy in the long run.
The issue has been raised at a time when the oil ministry is firming up proposals for raising gas prices and change allocation policy for the scarce resource.
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