<p> Amidst a row over his ministry's proposal to raise natural gas prices, Oil Minister M Veerappa Moily on Wednesday said the revision in rates was a contractual requirement which will help remove policy uncertainty and spur investments that have almost dried up.<br /><br /></p>.<p>With domestic and international companies as well as the government's technical advisor DGH finding the current rate of $4.2 uneconomical to produce gas from deep-sea fields, Moily has proposed to price all domestic gas at a uniform rate suggested by a panel headed by PMEAC chief C Rangarajan.<br /><br />"Investors want to know the direction we are going in before they can plan investments. If we shrink our responsibility, no investment will come," Moily said.<br /><br /> India has vast resources that can help cut $160 billion oil import bill but without the right pricing and policy regime, resources will remain trapped inside earth, he said. He has proposed raising prices to at least $6.775 per million British thermal unit for both PSU companies like ONGC as well as private firms like RIL.</p>
<p> Amidst a row over his ministry's proposal to raise natural gas prices, Oil Minister M Veerappa Moily on Wednesday said the revision in rates was a contractual requirement which will help remove policy uncertainty and spur investments that have almost dried up.<br /><br /></p>.<p>With domestic and international companies as well as the government's technical advisor DGH finding the current rate of $4.2 uneconomical to produce gas from deep-sea fields, Moily has proposed to price all domestic gas at a uniform rate suggested by a panel headed by PMEAC chief C Rangarajan.<br /><br />"Investors want to know the direction we are going in before they can plan investments. If we shrink our responsibility, no investment will come," Moily said.<br /><br /> India has vast resources that can help cut $160 billion oil import bill but without the right pricing and policy regime, resources will remain trapped inside earth, he said. He has proposed raising prices to at least $6.775 per million British thermal unit for both PSU companies like ONGC as well as private firms like RIL.</p>