Three new natural gas marketing reforms introduced by Union Cabinet to reduce dependence on imports
Union Cabinethas brought in three new reforms to how the bidding process for natural gaswill take place across India.
- The Director General of Hydrocarbons (DGH) will suggest a new e-bidding platform to gas producing companies for use.
- Even though gas producing companies themselves will not be allowed to participate in the bidding process, affiliate companies can still issue a bid.
AdvertisementThe Indian government’s Union Cabinet has approved three new
This includes setting up a new e-bidding platform, prohibiting producing companies from participating in the bidding process and bringing all different fiscal models under the new bidding mechanism.
“India currently produces 84 million standard cubic meters (MMSCM) of natural gas and imports around the same amount. With the new reforms, 40 MMSCM will come into local production. Country’s dependency on import of natural gas will reduce,” said Union Minister
A new bidding process to promote pricing and marketing freedom for natural gas
Last year, the Indian government declared that any new discoveries and any gas found within those regions will get pricing and marketing freedom. But, according to Pradhan, there was a bottleneck in how to implement the system.
“We have to move the country towards clean energy. Have to increase gas consumption. The government has already allocated around ₹4 lakh crore to build up gas infrastructure across the country,” he said..
Now, the Director General of Hydrocarbon (DGH) will suggest an e-bidding platform to producers. It will list all government entities and other credible companies. The DGH will also issue guidelines for the same.
“Producers will have a choice between different platforms in a transparent public domain akin to how coal, spectrum and mineral auctions take place in the country,” said Pradhan.
While producing companies themselves will not be allowed to participate in the bidding process, all other players and affiliate companies will be allowed to bid.
In order to standardise the new system, any segmented public sector enterprise (PSE) and fiscal models will also be governed by the new bidding mechanism and any affiliate bidding mechanisms, explained Pradhan.
New H-1B visa rules make it more expensive and harder to hire workers from India — but they may not hold ground
Dinesh Khara steps in as new SBI chairman as Rajnish Kumar's term comes to an end
Popular on BI
- Elon Musk's brain-chip startup shares video it says shows a monkey telepathically 'typing'
- BHEL among 5 bidders for Rs 58,000 cr deal to manufacture, maintain 200 Vande Bharat trains
- Herschel Walker's son says Trump called his father for months demanding that he run, while 'everyone with a brain' begged him not to
- 1,330 recognised startups from gaming and related sectors as on Nov 30: Som Parkash
- Sula Vineyards to open IPO next week from Dec 12-14; GMP already at ₹70 per share
- India to add 9 million gig jobs by 2025 says Indeed report
- From Brahmastra to KGF: The most searched movies on Google in 2022 in India
- Adjusted for inflation, policy rate still remains accommodative, says RBI Governor
- Jio Haptik
- Gig jobs
- Sula Vineyards IPO
- Whatsapp tips
- International Roaming Plans
- RBI hikes repo rate
- Larget Employers
- Highest Revenue companies
- New Cars in December 2022
- Best Companies for Work
- India's Richest People
- Most Valuable Companies
- Most searched movies
- Kama Holdings
- Top 10 Colleges in India
- Top 10 Airlines in World