Discretion allowed under new norms.
Reliance Industries and other producers of natural gas will no longer need the government’s approval for gas price if it is arrived at using the new guidelines for the discovery of market price, an official order said.
The Ministry of Petroleum and Natural Gas, last week, notified guidelines for discovery of market prices for domestically produced natural gas via e-bidding.
The companies “shall design the tender/ bid offer, including the eligibility criteria, bid parameters, evaluation criteria, tender fee, salient terms and conditions of Gas Sales Agreement and any other relevant information, etc., with a view to encourage wider participation from prospective buyers, promote competition and maximise the value of natural gas offered,” the order said.
ONGC and OIL are also to follow these guidelines for discovery of market price of natural gas from their fields wherever pricing and marketing freedom have been granted, it added.