Moily refutes charges of favouring RIL on gas price

Petroleum Minister M. Veerappa Moily Friday refuted allegations of government favouring Reliance Industries (RIL) as "malicious" and said the proposed revision in natural gas price would apply to all companies.

The allegations of favouring RIL were made here at a press conference Thursday by CPI member of parliament Gurudas Dasgupta.

"The proposed pricing guidelines shall be equally applicable to both the private and public sector companies engaged in production of natural gas," a petroleum ministry statement quoted him as saying.

"It may also be highlighted that more than 60 percent of the natural gas in India is still produced by the public sector companies. Therefore, the allegation that the price is being revised for the benefit of the private sector is completely misconceived," Moily said.

He said the proposed increase in natural gas price was being done in line with the formula proposed by Prime Minister appointed panel headed by his economic adviser C. Rangarajan and there was compelling economic logic for the proposed price revision, in view of the huge import bill on account of oil and gas to meet the domestic demand.

The ministry is currently finalizing the cabinet note to be placed before the Cabinet Committee of Economic Affairs for a decision on gas price revision effective from April 2014.