Ministers voice opinion of gas pricing

New Delhi, Aug 19 (UNI) In an increasingly acrimonious debate, the row over pricing of gas, currently being examined by an empowered Group of Ministers have become shriller.

While former Petroleum Minister and senior BJP leader Ram Naik has said reneging on commitments given to investors will discourage companies engaged in finding oil and gas reserves, Rajya Sabha MP and a member of the Standing Committee on Petroleum and Natural Gas Tapan Sen, called on the government to ensure that Reliance Industries Ltd follow the price-discovery pattern arrived through International Competitive Bidding (ICB) by NTPC in 2004.

Maintaining his dogged opposition to the new price quoted by RIL, which he termed ''inflated'', Mr Sen said even the revised capital expenditure in its New Field Development (NFDP) for D6-KG Basin is questionable.

Mukesh Ambani-led RIL, which has raised the price of gas from KG-D6 Basin, and Anil Ambani Group firm RNRL has already moved the Bombay High Court.

Mr Naik has said that the New Exploration Licensing Policy (NELP) made the world look at India and new investments saw the largest gas discovery being made (in Krishna Godavari basin by RIL in 2002).

''India is short of both oil and gas and needs such investments.

Attempts to renege on promises will definitely not go down well with investors,'' he added.

However, Mr Sen feels that price quoted by RIL in NTPC's ICB process of 2.34 dollar per million btu as a benchmark price for gas, arrived through the ICB process.

In a letter to Prime Minister Manmohan Singh, Mr Sen says ''urge upon you to restrict the focus on pricing of gas to the rate quoted by RIL in 2004 for NTPC project." Mr Naik, however, pointed out that under the NELP gives the producer the freedom to sell oil and gas at market prices.

UNI