Centre approves major reforms in Natural Gas Marketing to push its usage in country

The Central Government on Wednesday, October 7 gave its nod for major reforms in the marketing of Natural Gas in the country. Under the chairmanship of PM Narendra Modi, the cabinet approved the reforms to push the usage of Natural Gas. Petroleum and Natural Gas Minister Dharmendra Pradhan said that the government will initiate a standardised e-bidding for bringing transparency in the price of Natural Gas while briefing the media in New Delhi.

'Natural Gas Marketing Reforms' were approved at the Cabinet Committee on Economic Affairs (CCEA) meeting chaired by the prime minister. The main objective of the policy is to prescribe the standard procedure to discover the market price of gas to be sold in the market by gas producers, through a transparent and competitive process. Further to permit affiliates to participate in the bidding process for the sale of gas, and allow marketing freedom to certain Field Development Plans (FDPs) where production sharing contracts already provide pricing freedom, an official statement said.

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PM Modi hails the 'natural gas marketing reforms'

Prime Minister Narendra Modi on Wednesday hailed the Cabinet's approval to 'natural gas marketing reforms' and said it will add strength to the efforts of making India a gas-based economy. Adding further he said India is moving ahead on the path of futuristic reforms. Prime Minister Modi praised the reform measure and tweeted, "India is moving ahead on the path of futuristic reforms. Today's Cabinet decision on Natural Gas Marketing Reforms' add strength to the efforts of making India a gas-based economy."

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The Oil Minister Dharmendra Pradhan informed that CCEA approved natural gas marketing reforms. Meanwhile, the government has additionally brought a series of reforms in the Gas sector and as a result investment of more than Rs. 70,000 crore is being made in the East coast, the official statement said. Moreover, the Gas production from East coast will contribute to Atmanirbhar Bharat by meeting increasing energy needs of the country, it added.

The Government in February 2019, implemented major reforms in the Natural Gas sector and brought standard shift by focusing on production maximization, the govt said in its statement. All discoveries and field development plans approved after February 28, 2019, have completed the market and pricing freedom, it added.

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(With PTI inputs)