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News Brief | December 2014

Expert slams new gas pricing norms

Vijay Kelkar, who headed a panel on energy security appointed by the UPA government, has said the new gas pricing mechanism will not attract investments in exploration and criticized the decision to give a premium on price of gas from challenging deep-sea fields saying that it reflected a cost-plus approach. ´The approved formula is not transparent as some of its components such as Russian price is not market driven and this pricing model will encourage gold plating,´ he said. Government officials disagreed with this and said the Russian price was reliable and closer to the Indian reality compared to the National Balancing Point price.
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