India's gas sector is in the midst of a major controversy with potential consumers exercised about what they see as an arbitrary and non-transparent pricing policy on production from recent discoveries. This article explores all the relevant issues arising from discovery, production and pricing of gas from contracts awarded in the New Exploration and Licensing Policy regime. It calls for policies to be drafted in a transparent and inclusive manner, giving due consideration to issues such as the most efficient use of gas, the subsidy burden, the market structure and the country's energy security.
