Steel companies are upset with the oil ministry's directive on allocation of gas from the KG-D6 basin. Welspun Maxsteel has moved the High Court and has alleged that the oil ministry over-rode the stated EGoM policy. CNBC-TV18's Ashwin Mohan reports in detail.
Gas production from the KG-D6 basin has been wavering since the past few months. The entire case revolves around how the portion of gas above 40 million standard cubic meters of gas per day has to be allocated as far as priority and non-priority sectors are concerned. Earlier today during courtroom proceedings at the Bombay High Court the oil ministry submitted its response to the plea that was filed by Welspun Maxsteel. The ministry said that the fertilizer sector should be given priority on the back of the kharif season. Secondly, the ministry says that extreme summer conditions require priority for the power sector is concerned. Oil ministry also told the Bombay High Court that its stance will lead to huge subsidy savings for the governmentDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
