New Delhi: At the time when the industry is facing shortage of coal and natural gas, Prime Minister Dr Manmohan Singh while inaugurating 7th Asia Gas Partnership Summit on Friday has said that the government is working on a transparent policy for determining fuel price. But at the same time, he also emphasised on the need for prices beneficial for the government.

The Prime Minister has assured that to eliminate worries of gas sector, the government will be taking all possible measures. He said that we are committed to trustworthy and transparent mechanism for policy and regulations in gas sector. The Prime Minister statement has come at a time when country’s biggest gas producer Reliance Industries is demanding for transparent and trustworthy market price for gas. Gas production at RIL KG D6 basin has shrunk by more than 40 percent to 35 mmcmd.

Reliance’s partner BPPLC has said that to improve FDI in the sector we need to have prices favouring profitability. The PM has said that oil and gas are natural resource, hence there should be a regulatory framework to keep constant vigil on the usage. 

The Prime Minister took this opportunity to inaugurate 2, 200 km long underground gas pipeline from Dahej (Gujarat) to Bathinda (Punjab) by pressing the button. He said that “According to me this pipeline can be extended till Pakistan’s border and I feel elated while presenting this to the nation.” PM has said that present GAIL India pipeline covers 9,000 km and till 2014 it will be extended to 14,500 km. The government intends to establish a gas grid extended over 30,000 km by the end of 12th plan till 2017.