The government has constituted a committee to review the functioning
of Petroleum Service Companies, PSCs in the country. The committee,
headed by the Prime Minister’s Economic Advisor C. Rangarajan, will
review the existing PSCs, including in respect of the current
profit-sharing mechanism with the Pre-Tax Investment Multiple and will
also give recommendation for necessary modification for the future
PSCs.
The committee, constituted by the Petroleum Ministry, will suggest a
suitable mechanism for managing the contract implementation of the
companies. It will also review the structure and elements of the
guidelines for determining the formula for the price of domestically
produced gas and for monitoring actual price fixation. The committee
will submit their report by the end of August this year.