Govt to appoint committee to review gas pricing formula

Nearly a month after it put natural gas price revision on hold, the government will appoint a committee under former Power Minister Suresh Prabhu to review a pricing formula approved by the previous UPA regime.

The Cabinet headed by Prime Minister Narendra Modi had on June 25 deferred the implementation of the Rangarajan pricing formula, which would have doubled current gas rates to at least $8.4 per unit till September 30 for conducting a comprehensive review of the whole issue.

The panel will comprise of Pratap Bhanu Mehta, President and Chief Executive of Centre for Policy Research and Bibek Debroy of the same institute, an Oil Ministry official said.

"Since we did not have time to appoint an expert group or engage organisations having some generic expertise in the area, a group of eminent persons is being set up," he added.

The panel will be asked to revisit the Rangarajan formula and the possibility of applying the same in its present form or with modifications.