Prime Minister Narendra Modi takes stock of energy sector issues

NEW DELHI: After reviewing the price situation, Prime Minister Narendra Modi today took stock of the scenario in energy sector which has been dogged pending decision on gas prices, subsidies and fuel supply issues.

Modi was appraised of the problems and pending issues facing the world's fourth largest energy consumer when Oil Minister Dharmendra Pradhan and Power and Coal Minister Piyush Goyal made powerpoint presentations on their sectors.

He was presented the current energy scenario as well as the near and medium term outlook and goals, sources said.

Modi had over the past two days reviewed food prices and agriculture scenario in the country.

Sources said near term decisions, described as low hanging fruits that would reverse the almost stagnant investment cycle in the energy sector, and broad roadmap for medium term were presented in the presentations.

Modi's attention was drawn to the urgency of a decision on gas price revision which was to happen on April 1 but got postponed because of general elections.

While oil and gas operators like Reliance Industries and BP have been pressing for implementing the decision taken by the previous UPA government to almost double the current USD 4.2 gas price with implementation of the Rangarajan formula, user ministries in power and fertiliser have opposed it as it would lead to hike in electricity charges and urea rates.

Fuel shortages facing power plants and inadequacy of transmission networks that have led to the current power crisis, were highlights of the presentation by Goyal and his Secretary P K Sinha.