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Govt may levy cess on natural gas

May 13, 2009 13:52 IST
The government may levy a cess on domestically produced natural gas to fund construction of gas pipeline network, Petroleum Secretary R S Pandey said on Wednesday.

If a 20 cents per million British thermal units cess is levied on gas price, in a year we can get Rs 3,000 crore (Rs 30 billion), Pandey said addressing the India Energy Forum Meeting in New Delhi.

The funds generated through the cess can be used for construction of 500-600 km of natural gas pipeline in a year so that a criss-cross national gas highway network is established soon.

Pandey, however, said a proposal to this effect is yet to be moved to the government for consideration.

India currently produces about 100 million cubic meter a day of gas, including 25 mmscmd from Reliance Industries Eastern Offshore KG D-6 fields.

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