DEEP INDS in FOCUS
In a boost to firms like Deep Inds, Reliance
Industries and ONGC, the oil ministry has moved a proposal to
the Cabinet for allowing pricing freedom for natural gas
produced from coal seams.
The ministry has proposed to the Cabinet that coal-bed
methane (CBM) gas producers be given pricing freedom and
allowed to price the fuel at market rates, sources privy to
the development said.
This will help operators quickly put in production the
CBM blocks they hold and reverse the trend of investors
relinquishing coal-seam blocks due to viability issues of
The sources said the CBM gas pricing policy proposed to
the Cabinet is in line with the recently unveiled regime
governing small and marginal oil and natural gas blocks.
The government had recently auctioned small and marginal
discovered oil and gas fields by promising investors complete
pricing, marketing and production freedom under a revenue
sharing contract agreement.
Pricing freedom would help quickly ramp up CBM gas
production to targeted 5.77 mmscmd within a year, they said.