The Ministry of Power has submitted its views on the recently approved price formula for domestic gas, saying that a base price beyond 5$/mmbtu will be unviable for the power sector in the present context, said Minister of State for Power Jyotiraditya M. Scindia in a written reply in the Lok Sabha recently.
It had further urged that even though the decision of hike in the price of natural gas might be necessary, keeping in view the investment considerations, certain special dispensation for a critical sector such as power should be evaluated to enable this sector to continue to off take natural gas for power generation at a viable tariff level.
The government has approved the gas price formula, which will be applicable to all natural gas produced domestically from 1st April, 2014 for a period of 5 years, based on the Rangarajan Committee recommendations.
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