and Mr A Aiyar is little mis-informed about need for gas price hikes.
Reliance is demanding $8.4 for the gas while its partner Niko Resources sells gas at $2.3 in Bangladesh. Better buy it from Bangladesh.
The Rangarajan committee which proposed astronomical hike in gas prices has used a arithmetic formula rather than cost based formula advocated in Production Sharing Contract.
Even the...
more... PAC of Loksabha headed by Yashwant Sinha of BJP had recommended more detailed study of costs incurred while arriving at the gas price.
Reliance is a govt contractor and not the owner of the gas fields. The govt will decide the gas price after allowing recovery of production costs and nominal marketing margin. The gas from D6 is profitable even at $3