Cabinet nod for reforms in natural gas marketing

The Cabinet Committee on Economic Affairs has approved ‘natural gas marketing reforms’ with an aim to standardise the procedure to discover the price of gas sold in the market.

Daily Current Affairs Quiz 2020

Key-Points

The policy aims to provide standard procedure for sale of natural gas in a transparent and competitive manner to discover market price by issuing guidelines for sale by contractor through e-bidding.

This will bring uniformity in the bidding process across the various contractual regimes and policies to avoid ambiguity and contribute towards ease of doing business.

The policy has also permitted Affiliate companies to participate in the bidding process in view of the open, transparent and electronic bidding.

The policy will also grant marketing freedom to the Field Development Plans (FDPs) of those Blocks in which Production Sharing Contracts already provide pricing freedom.