Lok Sabha Question No. 4311 (UNSTARRED), answered on 2016-12-12
Subject: Prices of Gas for Small Industries
Ministry: PETROLEUM AND NATURAL GAS
Asked by: HARI NARAYAN RAJBHAR, R. PARTHIPAN

## LOK SABHA

## UNSTARRED QUESTION NO. 4311

## TO BE ANSWERED ON 12.12.2016

## PRICES OF GAS FOR SMALL INDUSTRIES

## 4311. SHRI HARINARAYAN RAJBHAR:

## SHRI R. PARTHIPAN:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

## isVªksfy;e vkSj izkd`frd xSl ea=h

(a)  whether  any  special  price  has  been  fixed  for  the  gas  being  supplied  to  cottage  and small industries in various States and if so, the details thereof, State/UT-wise;

(b) whether any committee consisting of Ministers of Commerce and Industries of various States has been set up to advise on subsidised price fixation and if so, the details thereof; and

(c) whether there is deficit in the supply of natural gas to power and fertilizers units in the country  and  if  so,  the  details  thereof  along  with  the  corrective  steps  taken  by  the Government in this regard?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्ररी (स् विंत्र प्राार ( श्ररी धमेन्द  र प्रधान

## MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a):  The  price  of  domestic  gas  being  supplied  to  various  sectors  including  cottage  and small industries in various States is fixed as per New Gas Pricing Guidelines, 2014.  The gas to the Agra-Firozabad Industries in Uttar Pradesh is being supplied at Uniform Price Mechanism (UPM) with a mix of domestic and imported gas.  Further, in the North East Region, a subsidy of 40% on the price of domestic gas is given on the sale of APM gas to APM customers.

(b):   As per the information available, there is no such Committee consisting of Ministers of Commerce and Industries of various States to advise on subsidised price fixation.

(c): Government in the year 2015 has implemented two separate sector specific schemes to improve the availability of natural gas to power and fertilizer sector. In power sector, the Government has implemented a scheme for utilization of Gas based Power generation capacity for supplying imported natural gas (e-bid RLNG) to Stranded Gas based Power Plants  as  well  as  plants  receiving  domestic  gas  up  to  the  target  PLF  selected  through reverse e-bidding process for FY 2015-16 and FY 2016-17. In case of fertilizer sector, Government has implemented a scheme for ensuring the availability of sufficient quantity of  natural  gas  at  uniform  pooling  prices  to  all  gas  grid  connected  fertilizer  (urea) manufacturing units. These schemes have enhanced the utilization of existing gas based power generation units and fertilizer (Urea) manufacturing units. Further, the Government has taken several steps to enhance domestic natural gas production through several policy initiatives such as:

- (i)        Policy  to  grant  relaxation,  extension  and  clarifications  at  development  and production stage for early monetization of hydrocarbon discoveries.
- (ii) Marginal Field Policy- Discovered Small Field Policy.
- (iii) Uniform Licensing Policy-Hydrocarbon Exploration and Licensing Policy.
- (iv) Policy for Grant of Extension to small and medium sized discovered fields.
- (v) Policy  for  Marketing  Freedom  for  Gas  Produced  from  Deepwater  and  Ultra Deepwater areas etc.; and
- (vi) Policy on testing requirements for discoveries made under New Exploration and Licensing Policy (NELP) Blocks.
- (vii) To  incentivize  gas  production  from  difficult  areas,  Government  has  granted marketing,  including  pricing,  freedom  for  the  gas  produced  from  difficult  areas. Marketing freedom has also been provided under Discovered Small Field bidding round  as  well  as  under  Hydrocarbon  Exploration  and  Licensing  Policy  (HELP) under which acreages will be provided in future.

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