The Centre has overruled Gujarat government-owned firm GSPC´s demand for a gas price of $8.5 for its KG basin Deendayal field, saying the approved rate of $5.05 will apply to the company.
Gujarat State Petroleum Corp (GSPC) had in October demanded ´market determined price´for its ready-to-produce Deen Dayal West (DDW) fields, saying the firm ´cannot be put to irreparable harm by directing it to sell at a gas price which is less than the cost of gas production.´
The company had asked the Oil Ministry to´nominate GNFC for supply of DDW field gas at price and delivery terms actually negotiated between GSPC and GNFC based on arm´s length principles,´Oil Minister Dharmandra Pradhan said. He said GSPC informed the Ministry that GNFC had agreed to purchase gas produced from DDW field at $8.5 per million British thermal unit.
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