Media reports indicate that the Vijay Kelkar committee, appointed to suggest pricing of natural gas, may offer a band of prices besides the formula arrived the committee under C Rangarajan, the Chairman of the Prime Minister’s Economic Advisory Council.
Reports also suggest that the price band may not differ substantially from the basic formula arrived at by the Rangarajan committee.
Union oil ministry set up the Kelkar committee to suggest ways for India to reduce its dependence on imports for energy with a road map till the year 2030. The final report of the Kelkar committee will contain recommendation on fuel pricing.
It may be recalled that the C Rangarajan committee arrived at a price of $8.4 per mmBTu (million metric British thermal units) of natural gas.
Based on the recommendation of both the committees the government may arrive at a consensus on the pricing of natural gas.
Since the report of the committee is still in progress, the empowered group of ministers which is expected to take a call on the pricing, could postpone its meeting.
Even though the Kelkar committee may take six months to submit its final report, it may prepare an interim report on the subject soon as the KG-D6 fields of RIL are slated to get the new price with effect from April 2014.
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