Anil Agarwal, Chairman of Vedanta Group told a leading media that the government’s decision to hike the price of domestic natural gas would boost growth the sector.
On June 27, the Cabinet Committee on Economic Affairs cleared the pricing of all domestic gas through Rangarajan formula from April 1, 2014. The price of gas as per the formula is likely to be about $8.4 per million British thermal unit as opposed to $4.2 currently.
Agarwal feels the move has given a different perspective to the sector and he expects more investment to flow to India in general and the sector in particular.
Agarwal expects the gas price hike to open avenues for large companies to produce oil.
Meanwhile, Agarwal said Cairn India was producing around 190,000 barrel oil currently and it is aiming to raise it to 250,000 barrel in the time to come.
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