Companies & Sectors
60 percent premium for gas from difficult fields: Sources
New Delhi : Following the union budget 2016-17 proposal to incentivise gas exploration in difficult areas, the government is set to raise the price of domestic natural gas by around 60 percent for their undeveloped gas discoveries from such areas, an official source said on Thursday.
Domestically-produced gas price is currently priced at $3.82 per million British thermal unit (mbtu) that will undergo a revision from April.
An official source here told IANS that the government plans to pay a price for gas discoveries in deep-sea, ultra-deep sea and high-temperature, high-pressure areas as per a formula based on the average of landed price of naphtha, fuel oil and liquefied natural gas (LNG).
The union cabinet will decide whether the formula will employ a normal or weighted average of naphtha, fuel oil and LNG, he said.
The price derived with this method will go over $6 per mmBtu that would benefit explorers like state-run ONGC and the Mukesh Ambani-led Reliance Industries Ltd (RIL), the source added.
The Oil and Natural Gas Corp (ONGC) has earlier said that production from discoveries in difficult areas are not viable at current prices.
Several discoveries of ONGC, RIL and the Gujarat State Petroleum Corp (GSPC) in KG Basin on the eastern offshore alone are lying idle owing to the lack of a profitable price.
Presenting the budget in parliament on Monday, Finance Minister Arun Jaitley said: "Government is considering incentivising gas production from deep-water, ultra deep-water and high-pressure high-temperature areas, which are presently not exploited on account of higher cost and higher risks."
"A proposal is under consideration for new discoveries and areas which are yet to commence production, first, to provide calibrated marketing freedom; and second, to do so at a pre-determined ceiling price to be discovered on the principle of landed price of alternative fuels," he added.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.


AIBEA opposes privatisation of IDBI Bank

AIBEA has written to the Finance Minister opposing the privatisation of IDBI Bank, according to a release form CH Venkatachalam, General Secretary, AIBEA


All India Bank Employees Association (AIBEA) opposed the privatisation of IDBI Bank, in spite of the frequent statements to the contrary by the government and bank management, according to a release from CH Venkatachalam, General Secretary, AIBEA. He feels that there have been repeated attempts by the government to privatise IDBI Bank in the recent past and AIBEA observed a strike on 27 November 2015 opposing the move of the government.
According to Venkatachalam, “IDBI/IDBI Bank is meant to cater to the needs of development finance.  But, right from the beginning it is used as a milking cow to loot in the name of corporate loans.”
He feels that the bank management should make every effort to recover the bank’s bad loans and that it is regretful that the government is considering privatisation as an option.
Venkatachalam concluded by saying, “from AIBEA we have addressed a letter to Finance Minister and advised all our units to address similar letter to Finance Minister.  AIBEA will shortly give agitational programmes on this issue.”


BMC incurs Rs8 lakh cost to clear debris from the fire disaster spot at Chowpatty
BMC had to clean almost 315 metric tonnes of debris and damaged materials from the fire incident spot by spending over Rs8 lakh, which was not paid by the event organisers, reveals a reply received under RTI 
The Municipal Corporation of Greater Mumbai (MCGM) or BrihanMumbai Municipal Corporation (BMC) has spent Rs8 lakh for clearing and removing debris from the fire incident that took place during the Make In India week, reveals a Right to Information (RTI) reply. 
According to a reply received by RTI activist Anil Galgali, the demand raised by the BMC for payment of the services (for clearing and removing debris) from Regional Director of Confederation of Indian Industries (CII) has not even been responded to.
Galgali had sought information about clearing of the site post the fire incident on 14 February 2016 at the Maharashtra Rajani show held under the Make in India program held at Girgaum Chowpatty. In his reply the Public Information Officer (PIO) said, after the fire incident, the BMC had to clean almost 315 metric tonnes of debris and damaged materials for which it had to spend almost Rs8.06 lakh. "The work was executed by D Ward staff using infrastructure and implements of the ward and other departments, vehicles, own labour and labour for non-government agencies. Simultaneously the cost incurred for the clean-up was intimated to CII, the organisers of the show, who have till date not responded," the reply says.
Galgali, in a letter sent to Ajoy Mehta, Municipal Commissioner, BMC has demanded that if the organisers fail to pay up, then a police complaint be lodged as the BMC has helped the organisers in a difficult situation and such behaviour is not expected from such prominent organisations like CII.



Meenal Mamdani

1 year ago

Mr. Galgali is to be commended for keeping an eye on how public funds are abused by private entities.

BMC should charge a daily penalty to CII until the full amount is paid up. This will stop passing the buck.

CII probably wants the private company that organized the show to pay up for using items that were forbidden and which led to the disaster. However that is between CII and the private company. Why should the tax payer wait until the fight gets resolved?

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)