Thread by @BiIndia

#CabinetDecisions | Three new #naturalgas marketing reforms introduced by #UnionCabinet to reduce dependence on imports

businessinsider.in/policy/economy…

By @pabsgill

-The Indian government’s #UnionCabinet has approved three new #naturalgas marketing reforms to give a boost to the gas economy and reduce import dependence.

-This includes setting up a new e-bidding platform, prohibiting producing companies from participating in the bidding process and bringing all different fiscal models under the new bidding mechanism.

“India currently produces 84 million standard cubic meters (MMSCM)...

...of natural gas and imports around the same amount. With the new reforms, 40 MMSCM will come into local production. Country’s dependency on import of natural gas will reduce,” said Union Minister Dharmendra Pradhan while introducing the new reforms.

-A new bidding process to promote pricing and marketing freedom for natural gas.

Last year, the Indian government declared that any new discoveries and any gas found within those regions will get pricing and marketing freedom.

But, there was a bottleneck in how to implement the system.

Now, the Director General of Hydrocarbon will suggest an e-bidding platform to producers. It will list all government entities and other credible companies. The DGH will also issue guidelines for the same.

-In order to standardise the new system, any segmented public sector enterprise (PSE) and fiscal models will also be governed by the new bidding mechanism and any affiliate bidding mechanisms, explained Dharmendra.