EGoM to meet tomorrow, likely to give final approval of gas pricing

New Delhi, Aug 29 (UNI) The empowered group of ministers (EGoM) will meet here tomorrow for final approval of gas pricing as most of the members of EGoM have broadly agreed to the RIL's gas pricing formula with the exception of Fertilisers and Chemical Minister Ram Vilas Paswan.

Mr Paswan has raised several issues that the company or gas producers should have got first approval from the government for the basis of pricing instead of getting quotes from bidders to determine the market price of the gas.

The meeting of EGoM constituted to decide the issue of gas pricing was inconclusive on the second day yesterday.

The committee headed by Mr Pranab Mukherjee is considering the views of all the stakeholders, suggestions of Cabinet Secretary and Economic Advisory Council of Prime Minister on the issue of gas pricing for the RIL's Krishna Godavari (KG) basin.

Reliance Industries had invited bids from power and fertiliser companies along the route of the pipeline from Andhra Pradesh to Gujarat. The company had arrived at a benchmark price of 4.33 dollar per million British thermal unit (mBtu) of gas at the wellhead (exclusive of marketing margins and transportation charges.) The fertiliser minister is learnt to have raised several questions with regard to the price quoted by Reliance and its suggested formula.

According to the sources, Mr Paswan pointed out recommendations from the committee of secretaries that a pricing policy should be in place before approvals of gas formulae are taken up by the government.

UNI