Moily rules out reconsidering new gas pricing policy

Union Minister for Petroleum and Natural Gas M Veerappa Moily today said there was no proposal before the government to reconsider the new gas pricing policy.

“The Cabinet Committee on Economic Affairs has taken the decision and there is no proposal to reconsider it. There is no idea to change it as it would be detrimental to the development of the nation”, Moily told reporters here.

The decision was a considered move, before which there had been a broad debate at various fora and in public places and hence there is no idea to change the pricing policy, he asserted.

The decision to enhance the gas price has attracted criticism, particularly from the Left parties.

Moily said ONGC would accord priority to make available 20 lakh cubic metres of gas per day to the Puducherry Power Corporation limited in Karaikal to increase energy production from 32 MW to 800 MW.

ONGC has agreed to meet this requirement on a priority basis and would also ensure transportation of the gas within two years, he said.

Moily, who earlier participated in a meeting of the Hindi Consultative Committee of the Ministry of Petroleum and Natural Gas, said the issue was discussed with Lt. Governor of Puducherry Veerendra Kataria.

Minister of State in PMO V Narayanasamy was also keen on augmenting power generation, he said.

Moily pointed out that Chief Minister N Rangasamy had assured expediting government’s initiatives like acquiring land and other allied work to boost energy production.

He said ONGC would associate itself with the state government in setting up a super speciality hospital at Karaikal.

Moily said GAIL’s pipeline project would not have an adverse impact on agriculture and would only help people of Tamil Nadu, particularly, farmers.