The Hindu : Business : CoS to look into gas pricing issue

Online edition of India's National Newspaper
Wednesday, Jun 27, 2007
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Business

CoS to look into gas pricing issue

Sujay Mehdudia

NEW DELHI: Even as the crucial meeting of the Energy Coordination Committee headed by Prime Minister Manmohan Singh was postponed on Tuesday for July 12, the Prime Minister’s Office has decided to set up a Committee of Secretaries (CoS) to look into the issue of pricing of natural gas.

Dr. Singh was scheduled to chair the meeting of ECC to discuss the issue of allocation of natural gas for the fertilizer sector. The Petroleum Ministry was slated to make a presentation to the Prime Minister on the controversial issue of pricing of gas and its availability for the fertilizer industry in particular.

Sources said gas availability and pricing for power, the other critical sector, too were expected to come up for discussion during the meeting. The presentation was aimed to come out with a formula entailing a saving of Rs. 6,900 crore a year in fertilizer subsidy by using gas at market determined rate of about $4.5 per million British thermal unit instead of alternative fuels like naphtha that cost more than thrice. The ECC came into being two years ago to formulate a coordinated policy response cutting across Ministries to improve the overall energy scenario.

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