CNBC-TV18‘s Nayantara Rai reports that Reliance Industries has welcomed the CCEA decision on the new gas price formula, but a few apprehensions remain.
Reacting to the CCEA’s decision regarding a new gas price formula on June 27, Reliance Industries says that it welcomes the move but with apprehensions, reports CNBC-TV18's Nayantara Rai.
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Speaking to CNBC-TV18, senior RIL executives felt that the government had taken the right step by increasing gas prices. "However the government could have focused on a micro-driven regime and the new pricing policy is sufficient when compared to market prices."
RIL believes that a pricing formula with a cap will never allow any company to operate anywhere close to the market-driven regime added that the government was not supposed to fix the price, but only approve of the prices tendered.
Prasad also says that if the pricing formula was viable, the company would invest close to USD 8 billion in the oil and gas sector including an additional USD 4 billion in KG-D6. This is over and above the USD 5 billion which has been announced earlier in the year. The company is also mulling investment of up to USD 3 billion in NEC-25 and about USD 1 billion more in CBM.