Domestic gas prices may rise again as govt explores floor price mechanism

Agencies
September 28, 2020

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New Delhi, Sept 28: CNG and piped natural gas prices could face an increase this festive season if the government implements a new floor price mechanism for gas produced from domestic fields by companies such as Oil and Natural Gas Corporation (ONGC).

Sources said the petroleum ministry is considering a proposal under which domestic gas will have a floor pricing that would prevent fuel prices from crashing below an identified threshold in the current subdued market conditions and insulate oil and gas explorers like ONGC from a tariff crash.

Talks are on to link gas prices with price Japan-Korea Marker, a benchmark index used to determine LNG tariff in North Asia with a discount.

With JKM prices hovering over $ 5 million British thermal units (mmBtu) even with day $ 1 mmBtu discount, the Indian gas floor price under this formula will be close to $ 4 mmBtu. This is much higher than the government administered price of $ 2.39 mmBtu for the April-October, 2020 period. And if implemented, it could increase the cost for all gas consumers.

"Nothing has been finalised on having a gas floor price as of now. A panel in the petroleum ministry is looking at various options and the best course would be adopted that has little impact on consumers but also supports oil and gas companies with remunerative and sustainable gas prices."

The average cost of gas production for the country's largest public sector oil company ONGC is about $3.7/mmBtu, much higher than the current regulated price of natural gas at $2.39/mmBtu. This is expected to fall further to about $1.9/mmBtu for the next six months beginning October 1 under the current formula, sources said.

Lower gas prices is bad news for ONGC as it would mean further suppressed margins and losses. The company is set to lose close to Rs 6,000 crore on low gas prices this year, brokerages have said.

Brokerages have put ONGC's FY22E gas price at US$3.6-4.2/mmbtu depending on discount to JKM price if the new floor price is implemented. With Low L NG liquefaction capacity addition ahead, JKM spot futures for FY22-FY26E are expected at US$5.2-5.8/mmbtu vs US$4.7-4.1/mmbtu in FY20-FY21E.

Oil minister Dharmendra Pradhan had said earlier that India will phase out price controls in natural gas and make it market-linked soon.

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May 10,2024

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New Delhi: In a big blow to Brij Bhushan Sharan Singh, a Delhi court has ordered the framing of charges against the former Wrestling Federation of India chief in the sexual harassment allegations levelled by women wrestlers. The court has said there is sufficient evidence on record to do so, and the trial against him can now begin. 

Friday's order by the Rouse Avenue court comes days after the BJP decided not to repeat Mr Singh, who is the party MP from Uttar Pradesh's Kaiserganj, as the candidate from the constituency and decided to field his son Karan Bhushan Singh instead. 

The court has ordered the framing of charges under Indian Penal Code sections Ordered to frame charges against Brij Bhushan under sections 354 (outraging a woman's modesty), 354-A (sexual harassment) and 506 (criminal intimidation). The Delhi Police had filed a chargesheet against under these sections and one additional section - 354D (stalking) - on June 15 last year. 

Charges should also be framed against the former assistant secretary of the Federation, Vinod Tomar, under Section 506, the court said. 

Additional Chief Metropolitan Magistrate Priyanka Rajpoot said the charges will be framed against Mr Singh for sexually harassing five wrestlers and that he stands discharged in the allegations levelled by the sixth.

The six-time MP has been at the centre of a huge political storm since last year, when sexual harassment charges were levelled against him and protesters had hit the streets led by Olympic medallists Sakshee Malikkh and Bajrang Punia, as well as Commonwealth Games and Asian Games medallist Vinesh Phogat.

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News Network
May 12,2024

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Bengaluru: Karnataka Home Minister G Parameshwara on Sunday said that the Special Investigation Team (SIT), probing into sexual abuse charges against Hassan MP Prajwal Revanna, will not be going abroad to bring him back, and the Interpol will share information about him.

He also cautioned political leaders about making public statements or sharing information in connection with the case, which is sensitive.

The 33-year-old Prajwal Revanna, who is grandson of JD(S) patriarch and former Prime Minister H D Deve Gowda, is facing charges of sexually abusing several women.

The scandal has raised a political storm with the ruling Congress and BJP-JD(S) engaged in a slugfest.

Prajwal Revanna is said to have flown abroad on April 27, a day after the first phase of Lok Sabha polls in Karnataka was held.

He was BJP-JD(S) alliance's joint candidate from Hassan Lok Sabha segment, which went to polls in the first phase.

"No, there is no such option. Blue Corner Notice has been issued and the Interpol will share the information. The respective country in which he is found or identified - they will inform them (Interpol) and then our agencies, the CBI will get to know, and through them we will get to know."

"So far there is no information," Parameshwara said.

He was responding to a question on reports about the SIT team travelling abroad in connection with the case.

Speaking to reporters, he said, "Investigation is going on, not to affect the investigation we don't want to share any information."

Responding to a question on Union Minister Pralhad Joshi's statement alleging conspiracy behind the arrest of BJP leader Devaraje Gowda, for making allegations against Congress leaders in connection with the case, Parameshwara said, "If anyone says anything I cannot react to it. We cannot respond to every public statement. As this is a serious case, we cannot share information until the investigation is completed."

"My request to the public and to our leaders is to be cautious while making statements. If not, based on the statements given by them, we may have to call them for investigation and record their statement under 41 A of CrPC," he added.

Asked whether JD(S) leader H D Kumaraswamy will also be served notice, the Minister said he is a former CM and that he believes that the former has taken this case seriously.

"Before giving any statements on this case or before sharing any information in the public domain, one has to be cautious, and this applies to all," he added.

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News Network
May 6,2024

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Bengaluru: The Congress and BJP will lock horns on the electoral battleground again in less than a fortnight in Karnataka, as the stage is set for the second phase of elections in the 14 remaining Lok Sabha seats on Tuesday.

It is going to be a straight fight between the ruling Congress and BJP in Parliamentary segments in the northern districts. The JD(S) is not contesting in these seats and is supporting its National Democratic Alliance (NDA) partner -- the BJP.

The state has a total of 28 Lok Sabha constituencies. The first phase of polling in 14 seats in most of the southern and coastal districts was held on April 26.

A total of 227 candidates -- 206 men and 21 women -- are in the fray for the second phase.

More than 2.59 crore voters are eligible to exercise their franchise in 28,269 polling stations where voting will take place between 7 am to 6 pm.

The segments where elections will be held on Tuesday are: Chikkodi, Belgaum, Bagalkot, Bijapur, Gulbarga, Raichur, Bidar, Koppal, Bellary, Haveri, Dharwad, Uttara Kannada, Davangere and Shimoga.

In the 2019 Lok Sabha polls, BJP had swept all these 14 seats, defeating Congress and JD(S), which were in alliance and ruling the state then.

Having scored a thumping victory in the Assembly elections last year, the Congress now appears determined to put up a strong show.

Karnataka is the most important state for the BJP in south India as it's only here that it has held power in the past.

Speaking to PTI, Karnataka Chief Electoral Officer Manoj Kumar Meena said adequate security arrangements have been made for Tuesday's polling.

"Around 1.45 lakh polling officials have been deployed across the 14 constituencies. In addition, 35,000 civil police personnel, 65 companies of Central Paramilitary forces and armed police of other states will be deployed for the polling day," he said.

Besides this, 4,000 micro-observers will also be on duty and 17,000 polling stations will be covered by webcasting, he added.

Davangere has the maximum number of 30 candidates, followed by 23 in Shimoga and Raichur has the least number - eight.

Former Chief Ministers Basavaraj Bommai (Haveri) and Jagadish Shettar (Balgaum), Union Ministers Pralhad Joshi (Dharwad) and Bhagwanth Khuba (Bidar) -- all from BJP; Congress' Geetha Shivrajkumar (Shimoga) -- wife of actor Shivrajkumar and daughter of former CM S Bangarappa and AICC President Mallikarjun Kharge's son-in-law Radhakrishna Doddamani (Gulbarga), are among the prominent names in the fray.

Also in the contest are MP and veteran BJP leader B S Yediyurappa's son B Y Raghavendra, suspended party leader and former Deputy CM K S Eshwarappa -- both from Shimoga, former Speaker Vishweshwar Hegde Kageri and ex-Minister B Sreeramulu of BJP from Uttara Kannada and Bellary respectively and retired IAS officer G Kumar Naik of Congress from Raichur.

Stakes are high for several Ministers in this phase with their children in fray.

Sons of Ministers Laxmi Hebbalkar and Eshwar Khandre - Mrinal Ravindra Hebbalkar and Sagar Khandre - are contesting from Belgaum and Bidar respectively, while daughters of Ministers Satish Jarkiholi and Shivanand Patil -Priyanka Jarkiholi and Samyukta Patil- are in contention in Chikkodi and Bagalkot respectively.

Prabha Mallikarjun, wife of Minister S S Mallikarjun and daughter-in-law of veteran Congress leader Shamanur Shivashankarappa, is in the fray from Davangere.

The Congress' performance in the elections, especially in the second phase which covers almost all Lingayat-dominated districts, is crucial, as the party did not win one of them in 2019, and to also check whether the grand old party has managed to retain the support of a section of Lingayats -- considered as the BJP's core vote-base -- which seemed to have somewhat shifted towards it in the 2023 Assembly polls.

The Lok Sabha election is being seen as a big test of sorts for Congress state unit chief D K Shivakumar, who has made no secret of his ambition to become chief minister, amid speculations of change in guard mid-way of the Assembly term. The stakes are also high for Chief Minister Siddaramaiah, as victory in this election is seen as key to strengthening his hands, analysts say.

It is also seen as a kind of a "litmus test" for state BJP president B Y Vijayendra, who has the onerous task of helping the party retain its supremacy in the Lok Sabha polls, by regaining its traditional Lingayat vote-base.

Ensuring a BJP sweep is paramount for the son of veteran leader B S Yediyurappa, to consolidate his position and silence critics who have questioned his selection to the post, overlooking seniors and seasoned hands.

The ruling Congress is mostly banking on the implementation of its populist five guarantee schemes while the BJP seems to be leveraging the "Modi factor" to the hilt.

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