Pricing to be based on Rangarajan formula, says Veerappa Moily

The much-touted offer of $8.4 mbtu price for natural gas, which had generated heat and debate, was given a decent burial on Thursday, when Petroleum Minister M. Veerappa Moily announced that no such rate had been fixed or approved by the Cabinet Committee on Economic Affairs (CCEA). He said the price levels under the Rangarajan formula in April 2014 would be applicable to domestically produced gas.

His assertion comes in the backdrop of the Union Finance Ministry raising questions about various issues pertaining to gas pricing, including the applicability of $4.2 mbtu to gas from the KG D6 field of Reliance Industries Limited (RIL) after it overcomes technical difficulties so as to restore its asset back to full production for fulfilling…

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