Govt. levying penalties on RIL may sound justifiable but from the economic point of view, it does not put any constriant on them as either costs not incurred were not allowed to be recovered as revenues or was fault of co. as per charges of deliberate delays and hoarding of gas by them for want of improved price. Anyways, this shouldnt be argument for increased pricing of gas in near future in lieu of action taken. Higher price does not mean higher profit petroleum to govt. under contractual structure in India we have --simply explained - by charging more to yourself as owner(which govt. is in this case) you dont gain net -net in fact for a/cbook purposes you dole out more subsidies to all sectors like png consumers,fertilizers, powers etc.
Posted on: Mon, 14 Jul 2014 17:25:03 +0000
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