Lok Sabha Question No. 68 (STARRED), answered on 2018-07-23
Subject: Guidelines for Allocation of Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: NARANBHAI KACHHADIA, CHANDRA PRAKASH JOSHI

| LOKSABHA                                                                                                        | LOKSABHA                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
| *68.                                                                                                            | SHRI NARANBHAI KACHHADIYA:                                                                                      |
| Will the Minister of PETROLEUM AND NATURAL GAS पेट्रोलियम औरप्राक तिक गैस मंत्री                                | Will the Minister of PETROLEUM AND NATURAL GAS पेट्रोलियम औरप्राक तिक गैस मंत्री                                |
| be pleased to state: (a) whether the Government has framed any guidelines for allocation of gas to the upcoming | be pleased to state: (a) whether the Government has framed any guidelines for allocation of gas to the upcoming |
| (b) whether the Ministry of Power has submitted any proposal in this regard; and                                | (b) whether the Ministry of Power has submitted any proposal in this regard; and                                |
| ANSWER                                                                                                          | ANSWER                                                                                                          |
| MINISTER OF PETROLEUM AND NATURAL GAS (SHRI                                                                     | MINISTER OF PETROLEUM AND NATURAL GAS (SHRI                                                                     |

## STATEMENT REFERRED IN REPLY TO PARTS (a) to (c) OF THE LOK SABHA STARRED  QUESTION  NO.  *68  ASKED  BY  SHRI  NARANBHAI  KACHHADIYA AND SHRI CHANDRA PRAKASH JOSHI, MPs TO BE ANSWERED ON JULY 23, 2018

(a) Domestic gas is being allocated to various sectors as per Gas Utilization Policies of the  Government issued  from  time  to  time  and  availability  of  gas.  The  order  of  priority  of allocation  of  domestic  gas  under  New  Exploration  and  Licensing  Policy,  2010  is  as  given under:

- i. Existing gas-based urea plants
- ii. Existing gas-based LPG plants
- iii. Existing grid-connected and gas-based power plants
- iv. City Gas Distribution (CGD) sector (PNG-Domestic & CNG-Transport)
- v. Other sectors.

Ministry  of  Petroleum  and  Natural  Gas  in  2014  has  accorded  highest  Priority  to  City  Gas Distribution  (CGD)  sector  (CNG-Transport  &  PNG-Domestic)  and  put  it  under  no  cut category.

(b) & (c)       Ministry of Power (MoP) had introduced a scheme for the revival of Stranded gas based power plants for the years 2015-16 & 2016-17 which was discontinued by MoP from 31.03.2017.  MoP has sought certain incentives like waiver of Marketing margin and 50% reduction in transportation tariff which are commercial decisions and were covered in the above mentioned scheme.

MoP  has  also  requested  for  the  priority  allocation/reservation  of  gas  for  stranded  power plants. The allocation of domestic gas, including for power plants is governed by prevailing policies as detailed above. LNG is imported under open general license on mutually agreed terms between buyer and seller.