Petroleum Minister Murli Deora has sought reconstitution of an empowered group of ministers to decide on allocation of gas from RIL-operated KG-D6 fields to new customers. Deora, who met T K A Nair, principal secretary to the prime minister on Sunday, has formally written to the Cabinet secretary for reconstitution of the eGoM on the lines of the previous ministerial group headed by the then External Affairs Minister Pranab Mukherjee.
Four new players will be given spectrum along with one existing operator Bharat Sanchar Nigam or Mahanagar Telephone Nigam - in their respective circles.
Finance Minister Pranab Mukherjee has asked Communications Minister Andimuthu Raja to complete the auction of the third generation (3G) spectrum within the agreed deadline (February 15), so that the revenue from it can be reflected in the Union Budget for 2009-10. Mukherjee had earmarked Rs 30,000 crore as revenue from 3G auction, which has already been delayed by a year, in the Budget.
The much awaited auction of spectrum for 3G mobile services is likely to be delayed by more than a month and may commence from the first week of March next year -- schedule for which is to be announced soon.
The Department of Telecommunications is scheduled to auction 3G spectrum starting January 14.
The government told the Bombay high court on Friday that the empowered group of ministers decided that Mukesh Ambani-led RIL will start supplying gas from the KG basin to Anil Ambani's Dadri power project and other upcoming power plants once it is ready to begin operations.
RIL had sought 11.80 million standard cubic meters per day of KG D-6 gas to meet feedstock requirement at its twin refineries but it got only 2.34 mmscmd.
The EGoM has fixed priority for the 25 million standard cubic metes per day of gas Reliance plans to start pumping from September this year and 40 mmscmd from March 2009. It has asked the company to first supply gas from KG-D6 field, the first major field of NELP to go on production, to existing gas-based urea plants, which are now getting fuel below their full requirement.
External Affairs Minister Pranab Mukherjee, who heads an Empowered Group of Ministers on Special Economic Zones, is likely to consult Prime Minister Manmohan Singh to resolve the dispute between finance and commerce ministries over tax exemption for export profits from the zones.
Government sources on Thursday confirmed that the EGoM would meet on August 27. The EGoM, headed by Finance Minister Pranab Mukherjee, is likely to discuss various issues, including the amount of 3G spectrum to be auctioned, annual spectrum charges, the number of operators in each telecom circle and the reserve price for 3G and broadband wireless services, sources said.
The empowered group of ministers (EGoM) on gas headed by External Affairs Minister Pranab Mukherjee on Thursday decided that gas allocation from RIL's D-6 block will be made to power projects subject to availability and without prejudice to court decisions, according to a government release.
The government told the court that price of gas, determined by an empowered group of ministers, is applicable to all the buyers, whether they are government companies or private. The government will file an affidavit to this effect on Tuesday.
Dabhol is part of Ratnagiri Gas and Power Pvt Ltd.
Within days of approving a price formula for gas to be produced by Reliance Industries, the government said on Friday it will ask the Mukesh Ambani company to prioritise fuel sales to fertiliser plants, city gas and existing power plants.
The empowered group of ministers, however, decided to allocate the initial 40 million standard cubic metre per day of gas from KG-D6 basin to the existing power and fertiliser plants and proposed units like the captive power plant at Nagothane did not figure in the scheme of things. A company spokesperson confirmed the scrapping of the project.
Land acquisition for special economic zones is stuck because of a year-old directive by the Empowered Group of Ministers that bars state governments from carrying out compulsory acquisition of land for the zones.
Hearing the petition by Tata Power against a decision of the Empowered Group of Ministers to allow use of coal from the captive mines for Sasan Ultra Mega Power Project to other projects, the Court did not give a stay and fixed the next date for hearing on February 24.
The Cabinet Committee on Economic Affairs has approved the purchase of 68 aircraft by the country's flagship carrier Air India, Civil Aviation Minister Praful Patel said on Thursday.
The eGoM on SEZ, headed by External Affairs Minister Pranab Mukherjee could not meet since January 2007, as controversies and violent protests broke out on the issue.
At least clear zones where firms have own land, says minister.
The rehabilitation policy, which is being currently formulated by the Ministry of Rural Development, is unlikely to affect the special economic zones already approved by the government.
The Empowered Group of Ministers, which had its third meeting on Wednesday morning was near unanimous on the need to honour the government's commitment allowing marketing and price freedom to investors investing in oil and gas hunt.
Monday's meeting of the empowered group of ministers on pricing of gas from Reliance Industries' D6 block in the Krishna-Godavari basin has proved inconclusive.
Petroleum ministry rejects conclusions of two reports ahead of EGoM.
The government is set to exceed its 2009-10 disinvestment target of Rs 1,120 crore through the first company that is slated to go to the markets this year -- NHPC.
The empowered group of ministers, headed by External Affairs Minister Pranab Mukherjee, had imposed a 5000 hectare ceiling on SEZs last year following widespread protests over land acquisition. The meeting of the eGoM, scheduled for February 4 to review the land ceiling was cancelled.
The commerce ministry had, in March, put on hold this change in the SEZ rules.
A key meeting of senior United Progressive Alliance government ministers and political parties, including the Congress and its Left allies, failed to secure a political consensus on the showpiece Special Economic Zones initiative.
eGOM is likely to reconsider the 5000 hectre SEZ land ceiling limit in the coming month.
The eGoM, headed by External Affairs Minister Pranab Mukherjee, is likely to take up issues including demand from developers to revise the 5,000 hectare land ceiling for one SEZ.
The Parliamentary Committee on Special Economic Zones on Friday said no further SEZs should be notified unless the law is amended to include changes pertaining to land acquisition.
New Delhi The government has decided not to sell the Dabhol power plant, which has been struggling thanks to huge debts it owes to the contractors.
The government will not stop companies from filing fresh applications seeking permission to set up special economic zones. However, it will not process any fresh applications until it clears the backlog of over 360 pending proposals.
"The letter approving a price of $4.20 per million British thermal unit (mBtu) for first five years of production from KG-D6 was issued by the Petroleum Ministry on Thursday," a source familiar with the development said.
An Empowered Group of Ministers headed by Finance Minister P Chidambaram had on February 28 decided to sell the stake in IOC, the nation's largest oil firm, at a discount of 10 per cent through an off-market deal.
Fresh notifications and approvals for setting up Special Economic Zones are being put on hold till an Empowered Group of Ministers looking into the matter takes a final view, Rajya Sabha was informed on Wednesday.
The government has decided to scrap a plan to purchase wheat through a series of small domestic tenders in different parts of the country, fearing that private traders may corner most orders.
In another instance, a foreign partner of a notified SEZ had already procured equipment abroad for setting up the units but could not send them to India as all proposals were put on hold.
A group of ministers, constituted to look into pricing and utilization of natural gas produced from new fields like the KG-D6 of Reliance Industries, is likely to hold its first meeting on August 27.
The meeting of the empowered group of ministers on special economic zones could not reach any firm view on on Monday while the government will take the rehabilitation policy to the Cabinet next month.
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