The Standing Committee on Finance, headed by senior BJP leader Yashwant Sinha, adopted a report, which mentioned that there should be a cap to which gas prices can be raised and producers should be subjected to closer scrutiny.
The report will now be presented to Lok Sabha Speaker Meira Kumar. "No diligence was done before arriving at the decision to revise gas prices. Apart from that, no cost or impact study was also done in this regard," it said.
Calling for a rethink on certain elements in the pricing formula suggested by the Rangarajan panel, it said that a more realistic price formulation suited to Indian priorities should be evolved. "There should be a cap on the suggested price under the formula, it cannot be the case that gas producers will be allowed to reap unlimited gains in the event of upswing in global prices, at the expense of core sectors of the economy."
"The government must ensure that the contractor responsible for delivering the major chunk of gas from KG-D6 gas field supplies the shortfall, he still owes as per the agreement, at the old rate of USD 4.2 per mmBtu, rather than getting the benefit of the new price for previous commitments," it said.


Latest News from India News Desk