The petroleum ministry has put forward its suggestion before the Planning Commission to form an inter-ministerial Committee to devise a policy for pooling of natural gas prices. It has further suggested that pool operating guidelines be formulated to make the policy operational.
- The inter-ministerial committee is recommended to be set up under the chairmanship of Advisor (Energy), Planning Commission. The other members to be included in the Committee are expected to be representatives from the ministry of petroleum, power, fertilizer and finance at the Additional Secretary level.
- The pooled pricing mechanism for the natural gas industry is essential in view of the following:
- --Limited domestic gas availability
- --Increasing reliance on LNG to feed the demand from priority sector.
- Taking view of the above facts, the petroleum ministry had commissioned a study on the feasibility of pooling of natural gas prices for which it had appointed Mercados International, a reputed consultant. Based on the study, the consultant suggested separate pools for the fertilizer and the power sector.
- Furthermore, the recommendations and comments invited from various interested parties suggested that there were several complex inter-ministerial issues which needs resolution before pooling become a reality.
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