Click to play videoNew Delhi: Reliance industries pricing formula for gas has been approved with minor modifications. The new price is just 13 cents lower than the proposed price of $4 dollars 22 cents per mmbtu.
Sources say that all the eight ministers in the EGoM (Empowered Group of Ministers) were unanimous in their decision to allow market prices prevail for the companies investing in the country’s Oil Exploration & Production activity.
On the other controversial issue of calling for re-bids for the KG basin gas, sources say that the Empowered Group of Ministers will not call for rebids. This because the Petroleum Ministry believes that if calling for rebids could drive the price of gas to upto 10 dollars, making gas completely unaffordable for the power and fertilizer sectors.
Sources say that the government will take a call on whether certain sectors need priority in gas allocation.
The approved price formula would be effective for the present term of gas supply namely 5-years, and would be revised at the end of this period with the government approval for the purpose of valuation.
However sources say that the EGom will also re-look the NTPC-RIL case if the court verdict goes in NTPC’s favour. This because the Power Minister Sushil Kumar Shinde is believed to have told the E-com that RIL should honor the court verdict in the RIL-NTPC case.
Sources say that the other controversial gas battle between the two Ambani brothers was not taken up by the EGoM at all.
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