Natural gas, produced until March 31st, 2014 should be priced at prevailing prices as fixed by the government in 2004 and its subsequent production be charged at the price range recommended by the Rangarajan Committee for all segments of industry excepting the fertilizer and the power for which the government should continue to subsidize the gas prices in view of their crucial strategic importance for end users.
Mr. S Nand, Deputy Director General, Fertilizer Association of India; Mr. Vivek Sharma, Director (Energy), CRISIL and Mr. R B Kabra, President, HSIL demanded that power and fertilizer sectors ought to be subsidized by the government incase the natural gas prices are hiked as advised by the Rangarajan Committee in view of the criticality of the sector.
The knowledge report circulated in the beginning of the conference also highlighted that the increase in natural gas prices is expected to encourage investment in the upstream segment of the hydrocarbon sector and boost their production. It will also improve the commercial viability of marginal, deep-water and frontier fields, which require cutting edge technology and increased capital spending.
The PHD Chamber is also of the view that the proposed hike in gas prices will help to boost the revenues of indigenous gas producers. Currently, ONGC, OIL and RIL account for 85% of the total output of domestic gas.
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