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GoM on Urea forms committee to work out pricing formula
New Delhi, Sept 17: The Group of Ministers on Urea Monday formed a committee of secretaries to thrash out a formula on pricing and availability of gas following sharp differences among its members on the issue as also over introduction of group pricing mechanism.
"It was decided to entrust the task to the group of secretaries as today's meeting failed to resolve the issues relating to pricing and availability of gas", he said.
He said the Petroleum Ministry has indicated that while there is adequate availability of LNG at present, it would be necessary to import substantial quantities of LNG as the demand is bound to increase in the coming years.
The GoM took note of the "mindboggling" investment to the tune of Rs 40 bn which would be required for import of LNG and its reconversion into gas. The Group was told that the first phase of the project at Dahej for reconversion of LNG from Qatar is likely to be completed only by December 2003, he said, adding that Ministers wanted a firm commitment on supply and use of gas.
Bureau Report