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Cabinet nod for reforms in natural gas marketing
Why is it in news?
- The Cabinet Committee on Economic Affairs approved ‘natural gas marketing reforms’.
Details:
- Aim: To standardise the procedure to discover the price of gas sold in the market.
- The policy has permitted affiliate companies to participate in the bidding process in view of the open, transparent and electronic bidding.
- The policy will grant marketing freedom to Field Development Plans of those Blocks in which Production Sharing Contracts already provide pricing freedom.
Significance:
- This will facilitate and promote more competition in marketing of gas.
- The policy would bring uniformity to the bidding process across various contractual regimes and policies to avoid ambiguity and contribute towards ease of doing business.
About Natural Gas:
- Natural gas is a superior fuel as compared with coal and other liquid fuels being an environment friendly and cheaper fuel.
- Currently, almost 50% of the consumption requirement is met through imported gas.
- India is targeting to raise share of natural gas in its energy basket to 15 percent by 2030 from 6.2 percent currently.