Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
12,086.70114.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Government is not considering raising RIL gas price before 2014: Veerappa Moily

The oil ministry has said the government is not considering any proposal to revise price for natural gas produced from Reliance Industries-operated KG-D6 block before 2014.

, ET Bureau|
Updated: Nov 21, 2012, 08.15 PM IST
0Comments
No gas price revision before 2014: Oil min on KG-D6
NEW DELHI: The oil ministry has said the government is not considering any proposal to revise price for natural gas produced from Reliance Industries-operated KG-D6 block before 2014.

"It is reiterated that request of RIL regarding revision of price was rejected in October, 2010 itself and it was categorically stated that no revision of gas price can be considered before 2014,"the ministry said on Wednesday. The government's position on gas price revision was already clarified through a statement on Nov 1, immediately after Veerappa Moily assumed the charge of the ministry, oil ministry spokesman said.

Reliance, which had initially proposed to raise the gas price because of wide price difference between the D6 gas and imported liquefied natural gas, had already decided not to pursue it, government and industry officials said. "The company is asking the government to fix gas price beyond 2014," one official with direct knowledge of matter said requesting anonymity. An empowered group of ministers (EGoM) had fixed D6 gas price at $4.20/unit for five years ending March 31, 2014.

A decision to revise price of domestically produced gas would be taken on the basis of the Rangarajan Committee report, expected by the end of this month, officials said. The gas price issue was referred to the Rangarajan Committee in July when Jaipal Reddy was the oil minister.

A draft note on revision of gas prices, prepared for EGoM before the cabinet reshuffle, would now be reviewed by the new minister before it is re-submitted to the cabinet secretariat, officials said.

The note, which was submitted to the cabinet secretariat on Sept 19, was in circulation for wider inter-ministerial consultation before the reshuffle. "Now, as per the routine procedure, the ministry has been advised to obtain approval of the new minister-in-charge before it is re-submitted to the cabinet secretariat," the ministry statement said.

Also Read

Price rise soon in Parliament canteen

NPPA hikes 21 formulations’ prices by 50%

Palm oil prices surge 40% in a year

India's rising retail prices stoke worries of stagflation

Oil prices gain as OPEC revises deficit forecast

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service