Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
From the UPSC perspective following things are important:
Prelims level: Government mandated formula for determining natural gas prices in the country.
Mains level: Energy related topics are specially mentioned in the mains syllabus.
- Petroleum ministry is seeking approval from the Union Cabinet’s for a domestic gas trading hub
- It help India adopt a better mechanism for price discovery of both domestic as well as imported gas
Other plans of the ministry
- Ministry is in the process of creating an internal think-tank to assist in priority areas like
(1) foreign investment
(2) moving towards gas-based economy
(3) financing models
(4) using technology and curbing hydrocarbon imports
How is natural gas prices determined, currently?
- Currently, the price of natural gas in the country is determined through a government-mandated formula that links the local price to rates prevailing in gas-surplus nations
Future plans of the government
- Currently, India imports almost 60 per cent of its petroleum requirements
- India also plans to double its network of pipelines to transport natural gas to 30,000 km within the next three-four years which will help in shifting to a gas-based economy, reduce greenhouse emissions and cut oil import