Free Press Journal

Goyal: Anomalies in Rangarajan formula

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New Delhi: Days after the government put off natural gas prices hike by three months, Power & Coal Minister Piyush Goyal said there were anomalies in the proposed formula which needed to be fixed before revising rates. Goyal, who was part of the Parliamentary Standing Committee on Finance that criticised the Rangarajan formula for pricing of domestic gas, said affordability of power and fertiliser sector – which consume two-third of all gas produced in the country, should be kept in mind.
The Rangarajan formula calls for pricing at an average cost of importing liquefied natural gas (LNG) into India and rates prevailing at international hubs in the US and UK as well as the price of gas imported into Japan.