India Development News & Foreign Investment Opportunities

Approved CBM pricing freedom

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Approved CBM pricing freedom

The #Cabinet Committee on Economic Affairs has given approval for marketing and pricing freedom to the #Coal Bed Methane (CBM) Contractors to sell the gas at “Arm’s Length Price” in the domestic market.

While discovering the market price for Arms Length Sales, the Contractor has to ensure a fully transparent and competitive process for sale of CBM with the objective that the best possible price is realized for the gas without any restrictive commercial practices.

CBM contractors have also been permitted to sell it to its any affiliate, in the event of no buyer.

Royalty and other dues to the Government, however, shall be payable on the basis of #Petroleum Planning & Analysis Cell (PPAC) notified prices or selling prices, whichever is higher.

The policy is expected to incentivize the CBM operation in the country to boost gas production. fii-news.com

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