‘HC diktat on price to force RIL into loss’ (June 24) is very incisive analysis of gas-pricing. Unless the matter is resolved immediately, there are indications that RIL will trail ONGC which is forced to sell gas at $2.1 per mmBtu by virtue of an out-dated Administrative Price Mechanism (APM) which has left no incentive to explore for more oil and gas. This malady has seeped into fertiliser units which have seen no major expansion in recent years. The government must realise that certain industries cannot be expected to pay for its vote-bank politics. It must either revise the prices or subsidise the losses in a transparent manner so that companies remain healthy and contribute in nation-building activities.
MM Gurbaxani, Banglore
Readers should write to: The Editor, Business Standard,
Nehru House,
4, Bahadur Shah Zafar Marg,
New Delhi 110 002,
Fax: (011) 23720201;
letters@bsmail.in