Zee Media Bureau
New Delhi: The government has decided to set up a new panel under former Cabinet Minister, Suresh Prabhu, to review changes in the formula for gas pricing.
As per a news daily, a proposal suggesting the name of Pratap Bhanu Mehta (President of the Centre for Policy Research) and Bibek Debroy Professor (at the Centre for Policy Research) as other member of the panel, has been sent to the PMO for approval.
The panel under C Rangarajan, then PMEAC chairman under the UPA government had suggested a formula for gas pricing.
However, the new government on June 25 postponed revision in natural gas prices by three months pending a "comprehensive" review to make a controversial pricing formula more palatable.
The current USD 4.2 per million British thermal unit rate for gas, which would have jumped to USD 8.8 if a formula approved by the previous UPA government was implemented on July 1, will continue till September-end, Oil Minister Dharmendra Pradhan had said.
The first revision in rates in four years was originally to take effect from April 1 but with general elections being declared it was postponed by three months.
Pradhan, had held three rounds of discussions with Prime Minister Narendra Modi on the issue earlier.
In course of these discussions, it was clear that the new government was looking at making some changes in the formula, proposed Rangarajan, as it would have led to Rs 2 per unit increase in power tariff and Rs 12 a kg hike in CNG rates besides jump in fertiliser subsidy outgo.
With PTI Inputs
First Published: Thursday, July 24, 2014, 10:32