GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARRED QUESTION NO: 6667

ANSWERED ON:06.05.2010

UNIFORM PRICE OF GAS

(a) whether the Government has invited tenders from foreign companies alongwith the domestic companies for fixing uniform pricing of gas in the country;

(b) if so, the number of foreign as well as domestic companies which submitted offer;

(c) the name of company finally selected alongwith the basis of selection thereof;

(d) whether the Government has received requisite suggestions from the said company;

(e) if so, the details thereof; and

(f) the funds paid by the Government to the said company in this regard?

ANSWER

 MINISTER OF THE STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI JITIN PRASADA)

(a) GAIL (India) Ltd. on behalf of Government had invited tenders for consultancy assignment on uniform gas pricing mechanism in the country.

(b) The number of foreign as well as domestic companies who had submitted the bids are as follows:

Indian arm of Foreign Companies: 5

Domestic Companies:3 

 (c) M/s Mercado Energy Markets India Pvt. Ltd. was finally selected on the basis of the lowest price bid after satisfaction of bid evaluation criterion.

(d) & (e): Yes, Madam. The major recommendation of consultant inter alia, are as follows:-

(i) Two separate pools for the power & fertilizers sectors,

(ii) The term for the pool; should be 4-5 years,

(iii) There should be a pool operator.

(f): The tender value of the consultancy assignment awarded to M/s Mercados was Rs. 8.47 lacs exclusive of service tax @ 10.23%. Out of the above amount of Rs. 8.47 lacs, around 75% of the amount i.e. Rs. 6.35 lacs have been paid to the party till date by GAIL.