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RIL may price gas for non-core users

RIL may price gas for non-core users

The government has deci­ded to supply gas at regulated rates only to a few top-priority consumers – a move that will grant Reliance Industries (RIL) substantial pricing freedom and boost the government's share of revenue from the KG-D6 field when output rises.

The government is respo­nding to the steep fall in output from the KG-D6 gas field. The shortfall has prompted the oil ministry to order Reliance to cut supplies to 'non-core' sectors such as steel to help power and fertilizer plants get normal supply.

Steel companies have already challenged the order in court, but the proposed new pri­cing policy will make sure that such customers pay market ra­tes for gas when it is available. Reliance Industries wants to monitor data from the D-6 reservoir for a few quarters before it takes steps to ramp up production to normal.

In the new pricing regime, gas at the regulated price of $4.2 per unit would be supplied only for use in making fertilisers, subsidised cooking gas, city gas networks and power stati­ons that do not indulge in lucrative open-market sale, two government officials said reque­sting anonymity.

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