Besides Parikh, Singh sent letters of appreciation to V L Chopra, B Mungekar and Anwarul Hoda indicating that they may not find a place in the reconstituted body.
'Prices can be adjusted now. The government can even temporarily cut taxes'.
Gail India subsidiary Mahanagar Gas (MGL) on Friday announced a steep reduction in the retail price of compressed natural gas (CNG) by Rs 8/kg and domestic PNG (piped natural gas) by Rs 5/SCM across its licenced area. The move comes on the heels of the Centre revising the pricing methodology of domestically-produced natural gas on Thursday as proposed by the Kirit Parikh committee and following it with the new price announcement earlier in the day. In February, the city gas distributor reduced its CNG price by Rs 2.5/kg but prices are still around 80 per cent more than those in April last.
The Union Cabinet on Thursday approved a revision in the formula for pricing of natural gas and imposed cap or ceiling price to help cut CNG and piped cooking gas prices by up to 10 per cent. Natural gas produced from legacy or old fields, known as APM gas, will now be indexed to the price of imported crude oil instead of benchmarking it to gas prices in four surplus nations such as the US, Canada and Russia, Union I&B Miniser Anurag Thakur told reporters after a meeting of the Cabinet. APM gas will be priced at 10 per cent of the price of basket of crude oil that India imports (Indian basket of crude oil).
Lower crude oil costs and higher marketing margins are expected to raise the fortunes of oil marketing companies (OMCs) in the first quarter (Q1) of 2023-24 (FY24), while city gas distribution (CGD) companies could also benefit from lower spot prices of liquefied natural gas (LNG). However, in a break from the past, growth trends are expected to diverge for various segments within the broad energy sector. Analysts expect the earnings from gas production to go down for upstream national oil and gas companies such as Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) due to the introduction of the new domestic gas pricing regime on April 1. After showing steep losses over the first half of 2022-23 (FY23), the marketing margins of OMCs have steadily recovered in four months.
"For 2010-11 and beyond, the Kirit Parikh report will be the benchmark. The report is being studied.These decisions are politically sensitive issues and have to be sustained over a period of time," Petroleum Secretary S Sundareshan told Business Standard. "It is impossible to insulate the Indian consumer against the movement in international oil prices."
So far, GMTS has defaulted on the supply of more than 20 cargoes or shiploads, 13 of which were set to be received in the second quarter (July-September), officials said.
Diesel prices should be immediately hiked by Rs 4-5 per litre, the Kirit Parikh Committee has recommended while favouring continuation of existing pricing principles for controlled petroleum products.
The auto industry, however, said any such step to impose additional taxes on the sector will not 'make sense'.
The economists who signed the letter included Jean Drze , Abhijit Banerjee, Ajit Ranade, Jayati Ghosh, Kirit Parikh, Mihir Shah, Rohini Pande, and Vijay Joshi
The expert group was tasked to suggest a methodology for pricing of diesel and cooking fuel.
The group was constituted by the Planning Commission to achieve 20-25 per cent reduction in emission intensity by 2010 on 2005 levels as was announced by Prime Minister Manmohan Singh last year at Copenhagen climate meet.
India should accept equal per capita emission quotas.
Deora told Business Standard that a substantial volume of kerosene was also smuggled across the border, since the prices there were much higher. He added the government may have to rework various measures taken so far to curb the menace.
The room for political manoeuvre to raise petroleum prices is the highest at this point in time, says Business Standard.
"We have recommended that at least 20 per cent of coal should be sold through e-auction," said Kirit Parikh, member (energy), Planning Commission. CIL currently puts for sale about 10 per cent of its annual production through online bidding. The National Coal Distribution Policy has already recommended increasing this quantum in a bid to ensure better price discovery of the fuel.
The flip side of decontrol is greater competition for oil PSUs, says Sunil Jain.
Indian Oil Corporation (IOC) has come a long way in its 50 years of existence.
Using energy more efficiently can reduce our energy needs by one fifth; it is a strategy we must pursue even as we promote renewables, says Kirit Parikh.
The report, which was submitted to the prime minister last week, said that in the best-case scenario exports would register a growth rate of 6 per cent next fiscal. As regards 2008-09, the commerce ministry data said exports grew by 13.2 per cent during April-January. However, as the negative trend that started in October is believed to have continued in February and March as well, the annualised export expansion may not exceed 3-4 per cent.
The Planning Commission may go for a correction in the 11th Five Year Plan targets as it gears up for mid-term assessment of goals next year in view of the global financial meltdown's impact on the economy.
"I could say 40,000 Mw is certainly achievable, 60,000 Mw is a possible target but 77,000 Mw looks a bit difficult," said Kirit Parikh, member (energy), Planning Commission. He attributed the apprehension over meeting the capacity addition target mainly to the non-achievement of financial closures of some projects. About 15 per cent -- 12,000 MW -- of the power generation target for the current Plan period has been achieved.
Questioning the idea of market-determined prices for natural gas favoured by the petroleum ministry, the Planning Commission said on Tuesday that given the shortage of the fuel, the government had a role to play.
Mansingh, a 1970-batch IAS officer from Gujarat cadre, was the number one choice for the post of chairman of PRB at the screening done by the Search Committee headed by Planning Commission Member (energy) Kirit Parikh, top officials said.
Petrol and diesel prices will go up by Rs 2.67 a litre and Rs 2.58 per litre, respectively, after Finance Minister Pranab Mukherjee on Friday raised customs and excise duties on the two, virtually putting the Kirit Parikh Committee report on fuel price in cold storage.
India has asked bulk buyers to pay market rates for diesel since last January and has also been raising the price of subsidised diesel in small amounts every month in an effort to cut its ballooning fuel subsidies.
The government will provide five crore LPG connections on concessional rates in the name of women from below poverty line.
Upstream firms pay for a portion of fuel subsidies by extending discounts on crude oil they sell to refiners who are forced by the government to sell diesel and cooking fuel at rates lower than cost of production.
If the reforms are implemented, multi-brand retail majors such as Future Group and Reliance Retail might enter the fuel retail space.
At present, India has 56,999 fuel outlets. Of those, only 6,276 are owned by private companies
Amid a spate of government proposals at its door, the Election Commission has asked all Union government departments to route their proposals through the Cabinet Secretariat.
Travel by public transport can be made more attractive and practical for a lot more people.
The loss, which is made good through government subsidy, has declined since March as the rupee strengthened against the dollar and global oil prices softened.
The government-appointed Kirit Parikh committee suggested an 'immediately' hike prices of diesel by Rs 5 a litre, Rs 4 per litre in kerosene and Rs 250 per cylinder in LPG, reduce annual entitlement of subsidised cooking gas cylinder from six from nine and phase out diesel subsidy in one year to cut a record subsidy burden.
Ministry to propose a new subsidy mechanism to cap upstream firms' share.
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The stock market responded to his speech by going up by over two per cent; the rupee also gained in strength, by about 1.45 per cent, against the dollar.
As fuel prices surged in September, the government's decision to ask companies to cut price by Rs1 each on a litre of petrol and diesel came as a dampner for private players.
Can welfare schemes truly transform from being flagship to flag-bearers for a government that is looking to get a second term in 2019?
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