According to Reuters News Agency India plans to reform its oil and gas output by 40 billion U.S dollars by simplifying licensing rules and offering price incentives to recover gas from difficult offshore fields. This is necessary because of the growing demand for energy among Indian consumers.
According to Oil Minister Dharmendra Pradhan, under the new reforms, companies will have more freedom to set the price of gas from new discoveries but they will be subject to a ceiling price. Also companies will be allowed to have freedom to set price in existing finds not yet in production.
According to Oil minister Dharmendra Pradhan, if this plan is implemented it will help boost gas output by at least 35 million cubic meters a day (mmscmd) for 15 years, equivalent to a total of 6.75 trillion cubic feet over that period, Pradhan said. India's current gas production is about 90 mmscmd.