Oil matters-pre budget scenario

In the international conference on Monday oil minister Murli Deora revealed that prime minister Manmohan Singh may convene his meeting with the finance minister P Chidambram for discussing a long term pricing and taxation regime for the petroleum products. The fast approaching budget season is giving the country's denizens sleepless nights. The price inflations of the domestic gas and petroleum related items have already burdened the countrymen during the past few years.

The recent report submitted by C Rangarajan committee recommending Rs 75 raise per cylinder and around 1.21 and 1.61 hike in the petrol and diesel prices along with imposition of duty changes is gonna be duly considered by the Chidambram who is about to present the Union Budget for 2006-07 on coming 28 February.

Meanwhile, GAIL the state owned gas utility declared the turning of its 'Dabhol power project', LNG import terminal into supply hub for Maharashtra and karnatka. The plan also involves laying down of 730km long pipeline within coming 24 months catering to Bidadi, Bangalore in Karnataka and markets in Goa by the terminal. As said by Proshonto Banerjee,GAIL chaiman the LNG terminal at Dabhol will be operational by September with excess gas from terminal being fed to the new pipeline.

At present the terminal has the capacity of handling 5 million tones pa. against the 2.1 million tones of gas required by Dabhol power plant.