Double Nelp gas price to $8, says Rangarajan

Companies said they have no problem with the proposal to redesign future contracts as they would take new norms into account while bidding.

The panel also said the government's statutory auditor would select blocks for auditing based on financial materiality, and would focus on blocks in the exploration and development phase, when costs incurred are higher. Other blocks would be ordinarily audited by CAG-empanelled auditors, although the CAG would continue to have its statutory freedom to directly audit even these.

A PRICE TO PAY

* Domestic gas price from many blocks could double from $4.2 mmBtu to near-$8

* About 37% of natural gas produced in 2011 was from blocks licensed under Nelp

* Transport & liquefaction costs of imported gas are proposed to be excluded

* Future pacts may set fixed matrix of revenue share regardless of cost recovery

* Formula will help raise govt's revenue share as gas production and price go up

ALSO READ

Vodafone India CEO Marten Pieters rubbishes mandatory 2G bidding

Royalty payments to face queries on beneficial owners

China jockeys for radio control

For BHEL, power marriages aren’t made in heaven