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09-26-2012, 11:12 PM #1
Petroleum Ministry for CoS to decide on CBM pricingThe Petroleum and Natural Gas Ministry is learnt to have suggested setting up of a Committee of Secretaries (CoS) to scrutinise and work out details for the coal bed methane (CBM) pricing mechanism which has been hanging fire for a long time now.
Reliance Industries Limited (RIL) and Essar Oil have submitted proposals to the Petroleum Ministry seeking its nod for a definite price mechanism but the Ministry has been unable to work out a formula till now.
Sources in the Petroleum Ministry said the Petroleum and Natural Gas Minister, Jaipal Reddy, had written to Prime Minister Manmohan Singh seeking setting up of a CoS to study the issue and give its recommendations for further action. The CoS is expected to take up the proposals submitted by both the companies and arrive at a formula that would be taken to the Cabinet for a final view. “The Petroleum Ministry is of the view that CoS could have a closer look at the issue and then decide about the final details for pricing. There is no definite deadline by which this needs to be done but the Ministry is of the view that things need to be taken up head-on and uncertainty in this sector needs to end. It is important that CoS vet the proposal before it is taken to the Cabinet Committee on Economic Affairs (CCEA),’’ a senior official in the Ministry said....being a human...