ALSO READReliance to contest government's $1.55 bln penalty Government asks Reliance to respond in 30 days on $1.55 billion in penalty notice - source Reliance Industries Q3 net profit up 10 percent, beats estimate Reliance Industries Q3 net profit up 10 pct, beats estimate Full start of Reliance petchem plant will halt heavy naphtha exports, sources say
NEW DELHI (Reuters) - India has permitted coal bed methane (CBM) producers to sell gas at the market rate, a government statement said on Wednesday, a move that could help companies such as Oil and Natural Gas Corp and Reliance Industries.
The producers can also now sell CBM gas to their affiliates if they are unable to find any other buyer, the government statement said.
The government will announced a price for CBM gas, which will be used as a floor for calculating its royalty and other charges.
But CBM producers will pay royalties and other dues to the government on the basis of sale or market prices, if it is higher than the official rate, the statement added.
(Reporting by Nidhi Verma; Editing by Mark Potter)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)