EC's decision to defer gas price revision goes against stated government policy: CII
Industry body Confederation of Indian Industry (CII) has expressed its concerns and reservations on the Election Commission's decision to defer the government's proposal on gas prices while saying that it would go against the stated government policy and adversely impact investment decisions of the oil and gas industry.
would like to reiterate that it is only a computation decision where
the formula is pre-fixed on the basis of a cabinet decision. The
decision to hold back price revisions could have a long term impact
on the investment climate in this crucial sector," said Kris
Gopalakrishnan, President, CII.
final modalities of calculating the price was notified on January 10,
2014 - around 2 months before the model code of conduct came into
effect on March 5.
keep gas prices suppressed at the existing level, which is almost at
half of the estimated revised prices, would come as a bonanza for
poll-bound consumers, which by itself may be treading on the model
code of conduct.
decision to revise prices of natural gas was taken by the Cabinet
Committee of Economic Affairs on June 27 2013, almost nine months
ago. Energy scarcity and the need for ensuring its security has been
a constant policy pillar in government policies.
the actual price as per the formula is a procedure to be followed
every quarter using actual data, some components of which are
available only on the 14th of the preceding month before
the quarter for which the price is calculated and fixed. Hence in
this case, the price for April-June has been calculated based on
actual data that came in on March 14th