Experts here point out that the government interference in the pricing and marketing of gas leads to investment risk in a politically sensitive resources.
For one, while the Supreme Court verdict gives a clarity on the policy over the ownership of gas-fields and the power to decide prices, this aspect makes the government’s role more predominant but seen as a regressive step backward move by the champions of free market.
Taxation expert H P Ranina said: “This issue is now not merely confined to the concerned parties or the courts, but will also involve members of parliament, as the government will have to come out with a legislation to ensure that similar disputes do not happen in the future and investors have a clear understanding of what is at stake.”
Further, Ranina added: “The next six weeks are going to be crucial as the two companies will have to renegotiate and arrive at a deal.”