Rs 8,000 cr projects in oil, gas sector approved: Moily

New Delhi: The Cabinet Committee on Investments, headed by Prime Minister Manmohan Singh has cleared Rs 7,947-crore worth projects in the oil and gas sector, Minister for Petroleum and Natural Gas M. Veerappa Moily said here on Friday.

Five projects were taken up by the high-level panel on December 9. These projects involve companies such as IOC, CPCL and HPCL.

The Rs 2,379 crore Assam renewal project taken up by ONGC for the revamp and replacement of various installations has also been cleared.

Moily said that the panel also cleared a proposed Rs 5,200 crore worth LNG terminal project of GSPC at Mundra.

Subsidy transfer
The Minister said that the scheme of direct transfer of cooking gas subsidy into bank accounts has been successful. As on December 1, Rs 1,615 crore subsidy has been transferred to bank accounts of 1.274 crore domestic cooking gas customers.

The Ministry has also filed a petition and an affidavit for modification/clarification stating that Aadhaar is mandatory for receiving subsidy in bank accounts after the expiry of the three-month grace period.

Suggestions
Moily also hinted that an expert panel’s call for a Rs 5 a litre hike in diesel and Rs 250 increase in LPG rates will be diluted, saying that a balanced view keeping consumer interest in mind would be taken, according to news agency PTI. The government-appointed Kirit Parikh committee suggested an “immediate” hike in prices of diesel by Rs 5 a litre, Rs 4 per litre in kerosene and Rs 250 per cylinder in LPG, reducing annual entitlement of subsidised cooking gas cylinder from six from nine and phase out diesel subsidy in one year to cut a record subsidy burden.

“Economically that is the right decision but how practical is it, how we can apply (it), that is something we have to take a view on it,” Moily told reporters in the Capital.

The Minister said the suggestions given by the Committee are “very good” as they will help restore fiscal balance.

“If the country has to go forward, reform is a must. But the question is whether we can implement what has been recommended, because we have to balance between the consumer (interest) and government revenue. A balanced view will be taken on the report,” he said.