The Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, deferred the decision on revising domestic natural gas price by another 45 days to November 15. Earlier on June 25, the Government had postponed the decision on the matter by three months.
The NDA Government had put off implementation of the previous UPA-regime approved Rangarajan formula, which would have at least doubled rates to $8.4 per million British thermal unit, till September 30 for holding wider consultations.The UPA Government had in June last year approved a price formula in December 2013 with certain conditions for Reliance Industries’ eastern offshore KG-D6 block.
The formula was to be implemented from April 1, 2014 but as general elections were announced and Election Commission asked the then Government to defer it till completion of polls.Power and Fertiliser Ministries are not in favour of revising gas prices. In August, the Government constituted a four-member panel of secretaries to review the gas pricing formula. The committee submitted its recommendation on a new pricing mechanism last week.