New Delhi: The Economic Survey has suggested wide-ranging reform initiatives for the oil and gas sector so that the current situation of lower global crude prices is used to boost investment and create desired infrastructure.
The survey has proposed market-determined arm's length pricing to domestically- produced natural gas, a viability gap funding scheme for promoting gas pipeline infrastructure, inclusion of natural gas and LNG as declared good for uniform pricing across states and inclusion of petroleum products under the proposed goods and services tax (GST).
The survey has also said that rationalisation of LPG subsidy regime is essential and suggests capping subsidy to 10 cylinders per annum against the present 12 for each household. This is expected to further reduce subsidy burden on the government that is has already gone down drastically.
