Govt may give gas subsidy to power, fertiliser sectors

June 29, 2013

Govt_gas_subsidyNew Delhi: Jun 29: The government is considering giving natural gas to power and fertiliser sectors at reduced cost to help them cope with the two-fold increase in gas prices effective from April next year.

The move is expected to increase the country’s annual subsidy burden by $1 billion, contrary to the efforts being made over the past few years to phase out subsidies.

But the government says that revenue from exploration companies by way of royalty, taxes and profits, estimated at $500 million, will take care of the subsidy burden to a great extent.

“We will be getting more than $500 million by way of taxes and profit. Increase in prices was necessary as our own upstream regulator, the Director General of Hydrocarbons (DGH), had branded several discoveries made in deep sea as economically unviable for development at the existing $4.2 per million metric British thermal unit (mmBtu) price,” Petroleum Minister Veerappa Moily said.

“The power and fertiliser ministries have raised the issue. We can look at fixing the input costs for these sectors. The issues will be addressed in course of time,” Finance Minister P Chidambaram told reporters here.

A decision on gas price hike has come for the first time in three years after the sector suffered from lacklustre foreign investment. Domestic companies, too, did not show much interest in oil and gas exploration, owing to low output cost.

No investments

Chidambaram said no investment was coming to India in the oil and gas field. “While investment in India has declined from $6.3 billion in 2008-09 to $1.8 billion in 2012-13, Indian promoters are investing abroad, with $27 billion having flowed out in the last 10 years, and another $10 billion in pipeline,” he said.

“The only way to correct this is to give investors a reasonable price which will attract them to invest here, so that we can increase our domestic production,” he added.

The minister also said that importing gas raised its price to above $13 per mmBtu.

He also said the difference between imported and domestic production even after the two-fold increase in prices would be more than $4.50 per mmBtu.

“Gas importers will make a profit even after the hike,” he said.

The increase in gas price was opposed by the power and fertiliser ministries as it would lead to a higher cost of generating electricity.

Power cost

The power production cost could go up to Rs 6.40 per unit from the current Rs 2.93, they contended.

Chidambaram also rejected suggestions that the gas price hike decision was taken to benefit the private sector.

“We are not being influenced by anyone. If at all we are being influenced, we are influenced by the condition of the economy. Our current economic condition demands that we produce more gas,” he said.

While industry players and India Inc hailed the move, the Fertiliser Association of India (FAI) criticised it, saying that it will raise the government’s subsidy burden by Rs 11,000 crore per annum if urea prices were not corrected in tandem.

FAI Director General Satish Chander rued that the fertiliser industry is already not getting its subsidies in time.

Among upstream oil companies, the ONGC said it expected to add about Rs 8,000 crore in profits annually through the hike in gas prices, while Oil India said it would add Rs 1,000 crore of extra profit through increase.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 21,2020

Thiruvananthapuram, Feb 21: Hindu temples, dedicated to Lord Shiva, witnessed heavy rush on Friday as devotees celebrated Maha Shivratri festival with traditional zeal and religious fervour across Kerala.

Cutting across age barriers, devotees, including women and children, thronged small and big shrines since early morning to offer prayers and take part in special poojas and rituals on the occasion.

Devotees used to mark the auspicious occasion by observing 'orikkal' (fasting), dedicating the leaves of Koovalam plant, which is considered holy according to Hindu tradition, to the Lord and by abandoning their sleep chanting 'Om Nama Shivaya' mantras.

Ardent devotees even remain awake throughout the night and spend their whole day in temples.

The Sreekandeswaram Mahadeva Temple here, Vadakkunnathan temple in Thrissur and Maha Deva temple in Vaikom were among the major shrines which witnessed heavy rush since early morning.

Temple authorities, especially Devaswom Boards which manage many major shrines in the state, have made elaborate arrangements in Shiva temples to ensure smooth darshan for devotees.

All arrangements have been put in place on the banks of River Periyar in Aluva in Ernakulam for 'Balitharppanam', a ritual in which people pay obeisance to their ancestors.

Performing the ritual on the midnight of Shivratri is considered auspicious by devotees.

Hundreds of 'bali taras' (specially erected platforms) have been set up on the banks of the river to perform the ritual and a large number of priests have been deployed to assist devotees.

Thousands of police personnel were deployed in view of the large turnout of devotees.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
May 31,2020

New Delhi, May 31: India registered its highest single-day spike of COVID-19 cases on Sunday with 8,380 new infections reported in the last 24 hours, taking the country's tally to 1,82,143, while the death toll rose to 5,164, according to the Union Health Ministry.

The number of active COVID-19 cases stood to 89,995, while 86,983 people have recovered and one patient has migrated, it said.

"Thus, around 47.75 per cent patients have recovered so far," a senior health ministry official said.

The total confirmed cases include foreigners.

The death toll has gone up by 193 since Saturday morning, of which 99 were from Maharashtra, 27 from Gujarat, 18 from Delhi, nine each from Madhya Pradesh and Rajasthan, seven from West Bengal, six each from Tamil Nadu and Telangana, five in Bihar, three from Uttar Pradesh, two from Punjab, and one each from Haryana and Kerala.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 27,2020

Hyderabad, Jun 27: Ahead nurse working with a state-run hospital here died on Friday while undergoing treatment for COVID-19, a hospital official said.

The nurse, who was due to retire this month-end, tested positive about 10 days ago, he said.

The woman, who had been on medical leave for about 20 days, is suspected to have contracted the virus when she attended a private function in a neighbouring district, he said.

She was treated at the hospital for two days after she was found positive for COVID-19.

However, she was shifted to another government hospital as the symptoms continued unabated and sugar levels were high, he said.

The woman, who had comorbidities like diabetes and hypertension, died today.

Meanwhile, about 20 healthcare personnel, including doctors and paramedical staff, have so far tested positive for COVID-19 at the state-run Gandhi hospital, according to a hospital official.

He also said that there are around 50 patients whose family members have not come forward to take them home though the patients can be in home quarantine.

Family members have cited reasons such as residents not allowing a positive patient to return to the villages and presence of children at residences, for not taking them home, he added.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.