Interministerial talks on gas sector reforms begin
New Delhi: The petroleum and natural gas ministry has begun interministerial consultations on its proposal to end the power sector’s priority access to cheap domestic gas, setting up a gas trading platform and hiving off GAILNSE 0.66 %’s pipeline business into a subsidiary. It will send the proposals to the Cabinet after the consultation process, which is expected to take a few weeks, said officials.
The ministry has proposed to permit use of cheaper domestic gas by just fertilizer makers, city gas distributors and liquefied petroleum gas (LPG) makers, they said. Power plants and other industries are proposed to be barred from accessing cheap local gas, most of which is priced as per a government-set formula and is cheaper than the imported liquefied natural gas (LNG).
