In September, the government had allowed pricing freedom for the gas produced from 69 small and marginal fields it plans to auction shortly.
"In the recently announced marginal field policy, the government has provided pricing and marketing freedom for the natural gas. On similar lines, it is proposed to provide pricing and marketing freedom for the natural gas to be produced from the areas to be awarded under the new contractual and fiscal regime in order to incentivise production from these areas," the Oil Ministry said today.
Seeking to revive interest in oil and gas exploration by simplifying rules, the ministry yesterday invited comments from stakeholders on a consultation paper on new fiscal and contractual regime for award of hydrocarbon acreages.
International players like BP and private operators including Reliance Industries as well as state-owned Oil and Natural Gas Corp (ONGC) have been seeking pricing freedom as the current rates make new investments unviable.
The BJP-led government had in October last year approved a new pricing formula for all domestically produced natural gas.


Latest News  from Business News Desk