Industry players are awaiting the outcome of the impending meeting of the empowered group of ministers (EGoM) to discuss the allocation and pricing of natural gas.
During the meeting, the ministerial panel would discuss two separate proposals, one for raising prices of gas produced by blocks auctioned under new exploration licensing policy (Nelp) and the other for allocation of gas produced from other blocks, reports suggest.
The proposal on gas allocation was earlier finalised by the union oil ministry after consulting the Planning Commission and ministries of fertiliser and power.
Currently, fertiliser plants get priority over power plants for allocation of the scarce natural gas. However, reports suggest that the government plans to grant the fuel-starved power sector the same priority as fertiliser plants.
The change in pecking order can give the power sector enough fuel to generate 2,200 mw from existing plants, if the proposal is approved by EGoM.
Leave a Reply
You must be logged in to post a comment.