Government must adopt a single pricing, five-year stable regime for natural gas instead of a phased regime proposed by the petroleum ministry, union law and justice ministry said in its opinion.
The petroleum ministry sought the suggestion of the law ministry on the proposal to shift to market-based pricing for domestically produced natural gas.
In reply to this, the law ministry suggested a stable, five-year gas pricing formula, and also advocated a single price for all sources of gas.
Based on the recommendation of the Rangarajan committee, the petroleum ministry proposed to reform the pricing regime of natural gas. After the inter-Ministerial consultations, the proposal will be submitted before the Cabinet Committee on Economic Affairs (CCEA).
Separately the Kelkar Committee is working on the roadmap for switching over to market-determined gas pricing at the end of the 12th Plan period.
A CCEA note circulated to all Ministries stated that the objective is to frame guidelines for pricing of domestic natural gas based on the methodology suggested by the Rangarajan Committee.
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