According to an internal note prepared by the union petroleum ministry, the new gas pricing formula approved by the cabinet would enable exploration and production from around 3 tn cf (trillion cubic feet) of gas reserves. This would lead to increase in domestic supply of natural gas, the note points out. The note pointed out that investment in exploration and development plan declined in the last few y
Tag: market
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Experts want govt to create competition by amending act
Experts feel that unless the Coal Nationalisation Act is amended to allow mining by private companies, the government cannot create competition in the coal sector. The union cabinet recently approved the coal regulatory authority bill which envisages that the regulator would create regulations that bring in a level-playing field and more competition in the sector
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NMDC reduces price of iron ore for July
Considering tepid demand in the monsoon season, public sector mining major NMDC reduced prices of iron ore by Rs 100-200 per tonne for July. While the company decided to cut the price of lumps by Rs 200 per ton, it reduce the price of fines by Rs 100 a ton for July, media reports indicate. Following the decision, which is reportedly taken at the company's recent board meeting in Hyderabad, iron ore l
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Crude oil futures rise to one-year high
Geopolitical tension in the middle-east and expectation of rise in demand for crude oil in the US propped up oil prices in the international market to a one year high. Crude for August delivery settled at $101.24 a barrel on the New York Mercantile Exchange at a recent trading session. Tracking the most-active contracts, futures prices marked their highest settlement and first close above the k
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Gas price hike may fetch $2.2 bn more income to govt
A report by brokerage firm Bank of America Merrill Lynch shows that government may get an additional revenue of $2.2 billion owing to its decision to double domestic natural gas price. The government would use this additional revenue, which it may get through higher taxes and profit, to fund rise i
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TAMP can ask CCI to probe possible anti-trust behaviour
Tariff Authority of Major Ports (TAMP) may seek the service of the Competition Commission of India (CCI) to probe anti-competitive practices of terminal operators or port companies in future. With the shipping ministry set to liberalise tariff regime in the port sector, the possibility of cartelisation and other anti-competitive behaviour
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AOGO wants govt to move to free pricing regime early
The Association of Oil and Gas Operators (AOGO) opined that the government must move to a free market-based pricing regime for natural gas. In a statement, the industry body of the upstream oil and gas sector said future investors shall be willing to take the risk of lower prices, as long as the free market principles and non interference by allocation are obse
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RBI sells bonds worth Rs 140 bn in recent auction
Reserve Bank of India (RBI) sold Rs 140 billion worth bonds of various tenure on behalf of government. The central bank sold 2020 bond, 2025 bond, 2032 bond and 2035 bond through a recent auction. The central bank set a cut-off price of Rs 104.22, yielding 7.6598 percent for the 8.20 percent 2025 bond. For the 8.12 per cent, 2020 bond, the RBI set a cut-off price
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FIIs sell Rs 323 bn worth of debt papers in June
Official data shows that foreign institutional investors (FIIs), who bought Indian debt instruments worth Rs 22,000 crore during Jan-May 2013, sold Rs 32,336 crore worth of such papers in June. The heavy selling of debt instruments by FIIs led to a fall in bond prices and rise in bond yields. Yield on the 10-year government bond rose to 7.46 per cent, from 7.11 a month ago. This led to a negative monthly return of 1-2 per
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Method for computing competitive gas price
Recently, the Cabinet Committee on Economic Affairs (CCEA) cleared the fixation of price of domestic natural gas according to the recommendations of the committee constituted under the Chairmanship of C Rangarajan on Production Sharing Contract (PSC) mechanism in the petroleum industry. The approved policy derives from global trade transactions of gas, the competitive price of gas at the global level by combining two