Wants cap on new price formula, moots revenue sharing to curb gold-plating

After having approved a doubling of the existing gas price to $8.4 per mmbtu on June 28, the Finance Ministry has woken up to the fact that private gas producers like Reliance Industries Ltd are likely to reap windfall gains from the new pricing formula.

In a formal note, the ministry has now asked the Petroleum and Natural Gas Ministry to take appropriate steps to ensure that the Mukesh Ambani-owned RIL receives only the old price until such time it delivers the shortfall it was contractually obliged to supply from its KG D6 field but failed to, citing ‘technical difficulties.’ The Finance Ministry note appends two media reports, including The Hindu ’s editorial of June 29 (‘A very reliable formula’), ...

Wants cap on new price formula, moots revenue sharing to curb gold-plating

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