"This is a much awaited move by the government. The rise in gas price will not only encourage upstream companies to invest in exploring more challenging frontiers to augment gas production for the country, but a good amount of this increased price will flow back to the government in terms of royalty and dividend which could be invested in various development programs," said Sudhir Vasudeva, Chairman, CII National Committee on Hydrocarbons and Chairman and Managing Director, ONGC Limited.
"The Cabinet Committee for Economic Affairs's (CCEA's) approval of the Rangarajan Committee's formula for gas pricing is a welcome development as this is likely to incentivize exploration and production. It is also directionally a step towards achieving market determined pricing as suggested by the Minister, which will encourage the development of a competitive gas market in the country," says Mr Sashi Mukundan, Co-Chairman, CII National Committee on Hydrocarbons.
"We welcome the Government's decision as any movement toward market price is good for the Upstream Industry. This decision will bring in the much-needed investments in the Hydrocarbon Sector that are required to reduce the debilitating effect of increasing energy imports upon the economy." says Mr PMS Prasad, Member, CII National Committee on Hydrocarbons and Executive Director and Board Member, Reliance Industries Limited.