RIL Unhappy Over CBM Pricing Approval Delay

Reliance Industries has called it unfair the delay on part of the government in approving a pricing formula for coal bed methane at Sohagpur in Madhya Pradesh.

The delay has upset RIL’s investment plan to start producing CBM from 2013-14.

Reliance had given the gas pricing formula to the government about three months ago.  

The issue of contention lies in new guidelines issued by the government which restrict competition for discovering the fuel's market price to a limited number of coal bed gas users. Reliance is of the view that new norms would not allow discovery of competitive arms-length pricing.