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RIL to sell KG basin gas at $4.2 a unit

Posted by Manish Agrawal on Friday, 5 December, 2008

The government has clarified that the selling price of RIL gas from the Krishna Godavari basin, off the Indian east coast, to companies will be $4.2 per unit excluding transportation costs and taxes.
It has also identified the sectors to which the fuel will be sold. This will pave the way for RIL to gear up for gas production. The company has invested around $12 billion in the oil project and gas produced from this region will provide fuel to power plants and fertiliser companies. Currently, gas produced in India meets only 50% of the existing demand. 

These events come against the backdrop of the Bombay High Court asking the government to clarify whether the approved price of $4.2 per unit was the price at which companies would buy this gas or the price at which the government would calculate its share of the profit earned by RIL

Source : Economictimes.com

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