Prime Minister Narendra Modi's comments on increasing the share of gas in the energy basket and his intent to bring the fuel under the goods and services tax (GST) fuels a rally in gas stocks. The Prime Minister said, "We are committed to bringing natural gas under the goods and services tax (GST) regime" while launching key oil and gas projects in Tamil Nadu.

Speaking in an interview with CNBC-TV18, DK Sarraf, former Chairperson of Petroleum and Natural Gas Regulatory Board (PNGRB) said that GST would establish the principle of one gas market.

"This is the most significant announcement I have heard in recent time for the natural gas sector and this would establish the principle of one nation one market in respect of natural gas.”

The development in the pipeline sector will be much faster now, said Sarraf.

“The pipeline sector would develop fast because now the states have also realized the importance of natural gas pipeline for the development of their own states. So the states are also helping the natural gas pipeline companies. Therefore, the natural gas pipeline would see a major boost in the coming months.”

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(Edited by : Ajay Vaishnav)

First Published:Feb 19, 2021 11:00 AM IST