A Parliamentary panel has said that pricing of natural gas can not be the only component to attract investment in the hydrocarbon exploration and production sector.

In its report tabled in Lok Sabha on Monday, the Standing Committee on Petroleum & Natural Gas expressed dissatisfaction with the Ministry for Petroleum and Natural Gas’ review of the price-led investment strategy for exploration and production activities.

The panel’s report stated that it had recommended a thorough review to the Ministry but noted that the Ministry in its reply said that the new gas price is expected to incentivise investments in the upstream sector.

“The Committee would like to emphasise that pricing of natural gas should not be the only component and other measures like a stable tax regime, proper regulatory framework, faster clearances, transparency in revenue sharing etc., will go a long way to attract investment in this crucial and important sector,” the report stated.

The panel also reiterated its recommendation of reviewing the strategy to attract investment in the upstream sector. Meanwhile, the panel also recommended that the C Rangarajan Committee recommendations on production sharing contracts need to be examined in greater detail as “it has wide ramifications on the investments in the exploration and production sector”.

The Ministry informed the panel that a uniform licensing policy and revenue sharing model is still under the consideration of the government. However, the panel expressed dissatisfaction in the delay on the Ministry’s part about the progress made on the Uniform Licensing Policy and Revenue Sharing Model.