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11/01/2021 - Government Policies

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January 11, 2021

Though Pradhan Mantri Ujjwala Yojana was withdrawn recently, it needs to be extended further for the benefit of people. Comment (200 Words)

Refer - Business Line

Enrich the answer from other sources, if the question demands.

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IAS Parliament 3 years

KEY POINTS

The use of natural gas has several environmental benefits. The government is taking policy initiatives to increase the share of natural gas in India’s energy basket from 6 per cent to 15 per cent.

Gas Pricing

·        The natural gas pricing in the country is distorted, despite the government making attempts to streamline it by promising marketing freedom.

·        Gas price in India, as is the case with auto fuel price, is controlled artificially putting domestic gas producers at a disadvantage vis-à-vis prices in the global market.

Gas in India is sold at four different price points

1.      $1.79 a unit (gas is measured in million British thermal units) is the administered price,

2.     $4.5-5.5 a unit from production-sharing contracts and joint ventures,

3.     spot price is at about $18 a unit

4.    long-term imported gas contract is $6-7 a unit. At the retail end, added to the price are marketing margins, transportation costs, local taxes and levies.

·        Gas demand is directly linked to supply. Today, 89 mmscmd of total demand is met from domestic production and 101 mmscmd from imports.

·        Though the government has allowed pricing freedom for future discoveries or those which came on stream from 2019 onwards, it has put a cap on the price, which it announces every six months.

·        The cap is $4.06/unit for production from discoveries in deepwater, ultra deepwater and high pressure-high temperature areas.

·        Companies cannot sell higher than the capped price, though what they have discovered through open market auction was higher.

 

 

 

Arpit 3 years

Pls Review

IAS Parliament 3 years

Try to emphasize more on why the scheme has to be extended. Keep writing.

Sravani 3 years

Pls review. 

IAS Parliament 3 years

Try to stick to the word limit and provide sub-headings, try to provide the required details in the answer. Try to mention about why the scheme has to be extended. Keep Writing.

Dev 3 years

Please Review

and provide feedback 

IAS Parliament 3 years

Try to emphasize more on need to be extended, details about the scheme are not needed. Keep Writing.

aswin 3 years

Please review

IAS Parliament 3 years

Good attempt. Keep Writing.

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