Finance ministry against higher gas price to RIL

NEW DELHI: The finance ministry has backed a plan to cap gas prices from Reliance Industries-run Krishana Godavari fields till the company clears “past dues”, setting the stage for the union Cabinet to amend its earlier decision to double prices from all fields to $8.4 a unit from April.

Senior officers told TOI that North Block supported the move by the oil ministry last week after discussing the issue internally for several days. In government circles, the change in stance is being seen as a last-ditch effort to avoid further controversy after the Manmohan Singh government faced flak as it was accused of providing windfall gains to gas producers.

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