Gas pricing, the status of domestic oil and gas production, and the sale of domestic LPG at a subsidised rate were some of the issues raised by the Ministry for Petroleum & Natural Gas with the Prime Minister on Friday.

The ministry, along with the Power and Coal Ministries, made presentations to Prime Minister Narendra Modi on the hits and misses in their respective departments. Sources said detailed discussions on some key issues, including gas pricing, were held during the three-hour meeting.

The price of gas has affected all the three ministries, and the Petroleum Ministry has sought clarity from the PMO on the matter. The new price of domestically produced gas was to take effect from April 1, but was deferred due to the general elections.

On the domestic production front, the Ministry said that national oil companies, such as ONGC, have lost focus on exploration and production. It felt that such companies should not have diversified from their core activities, as ONGC did moving into downstream and midstream activities and Hindustan Petroleum Corporation did setting up sugar mills.

It also raised the issue of anomalies in the existing production sharing contracts for oil and gas exploration signed with the contractors. The Ministry also felt that the cap on subsidised domestic LPG cylinders should be reviewed.

Electricity tariff Meanwhile, the Power Ministry wanted the next wave of reforms to be initiated through amendments in the Electricity Act. It sought periodical tariff determination by regulators, as well as grid safety and security by increasing penalties for non-compliance of grid discipline. The ministry sought to promote renewable power by enhancing renewable purchase obligations.

The ministry also asked for expeditious grant of environment and green clearances for coal mines and captive coal blocks to resolve the fuel-supply crisis. To mitigate coal-supply issues, both the ministries of Power and Coal recommended the construction of three rail links on a fast-track basis to evacuate coal from North Karanpura, Ib Valley and Mand-Raigarh coalfields.

Coal mining Meanwhile, the Coal Ministry has asked for an expeditious decision on lifting of the Comprehensive Environmental Pollution Index in the resource-rich regions of the country, such as Jharsuguda, Singrauli and Chandrapur. The Ministry also recommended opening up of coal mining activities to the private sector by permitting commercial mining.

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