Present system of gas pricing would continue; Montek

New Delhi, Apr 16 (UNI) The Planning Commission Deputy Chairman Montek Singh Ahluwalia, today hinted that the present system of the pricing of gas would continue, but shared his concern at very low share of natural gas in energy mix in the county.

The share of natural gas in the energy mix in India is as low as nine per cent against the world average of 25 per cent and 40-50 per cent in some developed countries.

Mr Ahluwalia told a seminar on 'India's Expanding Gas Markets,' organised by the Centre for Resources Management of the Observer Research Foundation, that the present pricing system of allowing Administered Pricing Mechanism (APM ) to co-exist with competitive pricing in the private sector is fair enough and has proved to be effective, and without much differences of opinion on the pricing.

The Gas Regulatory Board will be ready very soon with all its personnel in place, Mr Ahluwalia revealed.

He said, once the regulatory board starts functioning, cultural regulation would also fall in place.

Pricing of gas would largely depend on the economics of its supply compared to the market of coal which is available in plenty in the country,he added.

Incentivising use of gas for being the cleanest fuel compared to coal in view of the global warming, could be another factor he opined.

Earlier, giving the inaugural address, Minister of State for External Affairs Anand Sharma, said not only economics but also geo-politics plays an important role in decision-making on energy options.

He said the government is yet to take a decision on the proposed pipe line from Iran.

Mr Sharma told a seminar that India has three options before it to import gas from Iran, through a joint Iran-India-Pakistan pipeline, shipping LNG through tankers and picking up gas from border of Pakistan.

''The Government is studying all the options and take a final decision taking into all factors, including the geo-politics of the situation,'' Mr Sharma said.

The Minister said the Government has taken many initiatives to ensure the energy security of the country, adding that according to projects, the demand for energy is expected to raise more than 50 per cent in the coming two decades.

He said the Government is looking at the transnational pipelines to import gas from various angles, energy security and the increasing role of gas world over, the environmental factor, especially in view of the global warming, and the stability factor which, unlike the crude oil, natural gas can offer to the growing Indian economy.

''Thrust, understanding and commitments have to be factored into while taking any decision on pipelines,'' he said.

Calling for greater partnerships between public sector and the private players in the area, the Minister complimented the Reliance Industries for playing a huge role in the petroleum field.

UNI