Unlikely to set up expert committee on new price formula to expedite the process.
Also Read: Fert Min seeks raise in domestic gas supply to urea plants
When the government had suspended taking a decision on gas prices it had said it would have consultations for three months. However, it is learnt that no expert panel would be constituted to arrive at the new price, instead a decision could be taken internally after inter-ministerial consultation, spearheaded by FM, as well as meeting with stakeholders like fertiliser and power companies. The idea is also to save time.
However, the new gas price formula is likely to be a short-term measure and is unlikely to be valid for 5 years.
According to sources, the government is yet to decide if the new price would be only for new wells, or if old pre-NELP fields should benefit from it.
The Rangarajan formula could be used just as a reference point, as majority of ministers believe it was flawed. The FM is in favour of aligning it to cost-plus regime (cost plus is cost incurred plus fixed), but the final outcome is yet to be seen. All indications are expected to be out before October 1, with modifications in Rangarajan formula.
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