Natural Gas Sector Reform In India: Case Study Of A Hybrid Market Design

Topics:
Electricity Transmission,
Natural Gas Supplies
Tags:
Natural Gas,
Sector,
Telecom & Utilities
Source:
Stanford University

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Overview: The state-owned Indian natural gas sector has been slowly moving towards deregulation for close to a decade. However, rather than wholly introducing free market forces into the existing state-managed sector, India has developed a separate, almost entirely decontrolled gas market alongside the existing sector. The major challenge to complete gas sector reform that remains is how to transition gas users from the state-managed sector to the free market. This paper explains the origins of this hybrid market and its likely evolution. The fertilizer and electricity sectors, which account for most gas consumption in India, are reviewed in detail. In both, while interlocking political forces have prevented full transition of the sector to the free gas market, some users have already made the transition.

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Format: PDF | Size: 260KB | Date: Jul 2005 | Pages: 26

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