CONTEXT:

• A high-level committee appointed by the Ministry of Petroleum and Natural Gas has recommended a higher natural gas price for producers from existing discoveries among measures to bring down India’s dependence on crude oil imports.

BACKGROUND:

• The committee has recommended short-term, medium-term and long-term strategies in the report to help reduce the import dependency of the nation.
• The recommendation is significant as at present only new difficult discoveries have been allowed a higher price of natural gas by the Ministry. The committee recommendation covers those discoveries that have been awarded under the New Exploration Licence Policy (NELP) and pre-NELP regimes.