You are here: Home » Current Affairs » News » National
Business Standard

PM Modi calls Cabinet nod to natural gas marketing reforms 'futuristic'

Asserting that India is moving ahead on the path of futuristic reforms, PM Modi hailed the 'natural gas marketing reforms' and said it will add strength to efforts of making India a gas-based economy

natural gas | Narendra Modi

Press Trust of India  |  New Delhi 

Narendra Modi
Prime Minister Narendra Modi

Narendra Modi Prime Minister Narendra Modi

Asserting that India is moving ahead on the path of futuristic reforms, Prime Minister on Wednesday hailed the Cabinet's approval to 'marketing reforms' and said it will add strength to the efforts of making India a gas-based economy.

The Cabinet Committee on Economic Affairs (CCEA) chaired by the prime minister has approved Marketing Reforms'.

The objective of the policy is to prescribe standard procedure to discover market price of gas to be sold in the market by gas producers, through a transparent and competitive process, permit affiliates to participate in bidding process for sale of gas and allow marketing freedom to certain Field Development Plans (FDPs) where production sharing contracts already provide pricing freedom, an official statement said.

Hailing the reform measure, Prime Minister Modi tweeted, "India is moving ahead on the path of futuristic reforms.

Today's Cabinet decision on Marketing Reforms' add strength to the efforts of making India a gas based economy." The government between 2016 and 2019 gave pricing freedom for all fields except those given to state-owned Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) on a nomination basis.

But, there were restrictions on marketing including a ban on affiliates of producers buying the fuel and in some cases, a state nominee being mandated to offtake the gas. This restricted competition kept prices artificially low.

The CCEA approved natural gas marketing reforms, Oil Minister Dharmendra Pradhan told reporters here.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 07 2020. 20:54 IST