Govt allows affiliate companies to buy gas produced from non-regulated fields
The government on Wednesday allowed affiliate companies to buy gas produced from non-regulated fields as part of giving complete marketing freedom to the operators.
The move is expected to benefit Vedanta and Reliance Industries, though the plea to raise the price of gas produced by PSUs ONGC and Oil India from their nominated fields failed to cut much ice with the Modi government. They will get $1.79 per mBtu, which is half their production costs.
Between 2016 and 2019, the government had granted pricing freedom to all fields except those farmed out to state-owned Oil and Natural Gas Corporation and Oil India on a nomination basis.
