Global businesses receiving limited gains from the saturated North American gas market – including ONGC, Reliance Industries and Cairn — have committed an investment of $20 billion to pursue their big hydrocarbon projects with special emphasis on gas.
According to business analysts, increased CNG prices will help investors pursue capital-intensive exploration and production projects aggressively. Cairn India plans to invest an additional $3 billion in pursuing hydrocarbon discoveries with an emphasis on gas.
On the other hand, several senior ministers harshly criticized the decision and called it unfair and unacceptable. According to the opponents, the assumption of increasing investment through price hikes is deeply flawed. Science and technology minister S Jaipal Reddy, rural development minister Jairam Ramesh, fertilizer minister Srikant Jena and power minister Jyotiraditya Scindia are among those who strongly protest against the decision.