A panel led by the Niti Aayog vice chairman is actively considering free-market pricing for natural gas produced from all fields, a major market-friendly reform that oil companies say is necessary to boost domestic output.
The oil ministry has already told the panel that such a move is necessary as it will help companies such as ONGC, Reliance Industries and Vedanta significantly step up output. If approved by the Cabinet, this would eliminate the current pricing formula that is often blamed for under-exploitation of the country’s gas fields and declining output.
The panel was set up in October after rocketing oil prices and a battered rupee drove up the import bill and drew the government’s attention to stagnant domestic oil production. Read More
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