In a big reform initiative, the government on Wednesday decided to put domestically produced gas under a standard price discovery mechanism to help scale up local production from fields of ONGC, OIL, Reliance and Vedanta and help create a uniform gas market.
Accordingly, the Union Cabinet approved a standard e-bidding procedure for market-based price discovery of gas across various contractual regimes. Petroleum Minister Dharmendra Pradhan said that under the new reform initiative, a standardised e-bidding mechanism will be suggested by upstream regulator Directorate General of Hydrocarbons (DGH) for transparent market-based discovery of gas price.
The regulator will also suggest a panel of e-bidding platforms to the producers. Gas producers will have a choice to opt for a platform and get the best market determined price for their gas.