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Home India

Big decision of Modi government, approval for natural gas pricing and East West Metro Corridor

Business News by Business News
October 7, 2020
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The decision taken under the chairmanship of Prime Minister Narendra Modi is an important step towards a gas-based economy.

The Central Committee on Economic Affairs has approved Natural Gas Marketing Reforms today. The decision taken under the chairmanship of Prime Minister Narendra Modi is an important step towards a gas-based economy. The goal of this policy of the government is to follow a transparent and competitive process to determine the prices of gas sales. Under this policy, prices will be fixed in a transparent manner through e-bidding and business convenience will increase with the introduction of this policy. The new guidelines will apply to gas producing companies and will apply to the prices and marketing of gas coming out of the oil gas block.

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Companies will participate in the electronic bidding

Under this policy of the government, the companies concerned will participate in the open, transparent and electronic bidding process. This will increase competition in the gas market. The government has also made provision forbidding again in its policy. With the coming of this policy, the field development plans (FDPs) of those blocks will also get marketing freedom for which they have already got pricing freedom under the production-related deal.

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There will be benefits in many areas

  • This policy brought by the government is only part of the reforms done in the last few years. These reforms done in the gas sector will benefit in many of the following areas.
  • The entire system related to production, infrastructure and marketing of natural gas will become more transparent. This will increase business convenience.
  • These reforms will increase investment in domestic production of natural gas and encourage self-sufficient India.
  • With the encouragement of investment, this policy will prove to be a milestone towards becoming a gas-based economy.
  • The increase in gas production-consumption will improve the environment.
  • Through these reforms, employment opportunities will increase in the sectors consuming gas.
  • Domestic production will also increase investment in many other sectors such as city gas distribution and related industries.

East-West Metro corridor also approved in Kolkata

The cabinet has also revised the cost of Kolkata East-West Metro Corridor Project for Kolkata and its surrounding urban areas today. The entire cost of its cost has been estimated at Rs 8575 crore and its completion target has been set for December 2021.

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