The Blast Furnaces of SAIL, Rourkela Steel Plant (RSP) have set new production records in the first half (H1) of the current financial year ended September 30, 2024.

The Blast Furnace-1 and Blast Furnace-5 produced 483789 tons and 1512543 tons of hot metal respectively in the first six months  to register their best ever April-September performances.   The State-of-the-art Hot Strip Mill-2 performed in tandem by rolling 1264792 tons of HR Coils in the same period to register its best H-1 performance which is a growth rate of 8.9 per cent over the corresponding period last year (CPLY).

In the month of September 2024, the Steel Plant set new benchmarks by  producing 362279 tons of hot metal and 343186 tons of crude steel to register its best September performance so far. The hot metal production with 2 operational furnaces touched a new high as Blast Furnace-1 (BF-1) and Blast Furnace-5 (BF-5) together produced 13375 tons on 11th September, 2024 to register the record single day.  The ERW Pipe Plant made 607 tons of pipes on 23rd September to clock its new single day production record.   

  RSP also clocked its best specific water consumption rate of 2.83 cubic meter per ton of crude steel (m3/tcs) in September, 2024 reaffirming its commitment to sustainability with the ongoing projects under Zero Liquid Discharge mission. 

Jawaharlal Nehru Port on Friday said it has posted a 16.49 percent growth in container traffic at 596,790 TEUs in September 2024 over September 2023

New Delhi: The Jawaharlal Nehru Port on Friday said it has posted a 16.49 percent growth in container traffic at 596,790 TEUs (twenty-foot equivalent units) in September over the corresponding month of the previous fiscal year.

The country's premier container port handled a total of 512,316 TEUs in September 2023, Jawaharlal Nehru Port Authority (JNPA) said.

The total traffic at the port during the previous month stood at 7.38-million tons, which was 6.14 percent higher compared to 6.95-million tons handled by the facility in September last year, as per the Port.

It also said that during September 2024, JNPA handled 569 container rakes and 91,088 TEUs, as compared to 535 rakes and 84,408 TEUs during the corresponding period in the previous financial year.

JNPA said its consistent growth reflects the efficient operation of all its terminals, aligned with international standards.

Currently, JNPA operates five container terminals - NSFT, NSICT, NSIGT, BMCT and APMT.

The Port also has a shallow water berth for general cargo, and a liquid cargo terminal, which is managed by the BPCL-IOCL consortium. Additionally, the newly constructed coastal berth links other Indian ports and facilitates enhancing the traffic of coastal containers.

Jawaharlal Nehru Port unveils four key projects worth Rs 8,363 crore at GMIS 2023

"Our commitment to providing sustainable end-to-end logistics solutions aims to ensure a seamless EXIM experience for the sector through ongoing initiatives," JNPA said.

RBM Infracon on Friday announced a Rs 200 crore investment to build 15 MW of green hydrogen generation capacity in Gujarat
 

New Delhi: RBM Infracon on Friday announced a Rs 200 crore investment to build 15 MW of green hydrogen generation capacity in Gujarat.

The listed company announced a tie-up with Greenzo Energy for supplying the electrolyser units for power generation, slated to be located in close proximity to major refinery projects in the state.

RBM, which has been engaged in the engineering procurement and construction works till now, will invest Rs 200 crore required for the plant and also take care of selling the power it will generate.

The project will commence in January-March 2025 and will be implemented in phases over 18 months, as per a statement.

RBM's managing director JB Mani told reporters that it will take up to 2 months for the compliances and permissions, after which it will finalise the funding and then start the work.

Claiming that his company is the only domestic entity manufacturing the critical electrolysers, which are required for producing green hydrogen, Greenzo's founder and MD Sandeep Agarwal said it has the capacity in Gujarat's Sanand to deliver up to 250 MW per year.

The company has an order book of Rs 1,200 crore and will start delivering from December this year, he said, adding that it aims to garner Rs 1,000 crore revenue in FY'26.

National Green Hydrogen Mission has potential to attract Rs 8 lakh cr in investments: Joshi

All the major corporates are producing grey hydrogen produced from conventional sources and struggling to get their act together on the green hydrogen front, which will create demand for the green hydrogen to be produced at Jamnagar, Bhuj and Kutch, officials at both the companies said.

About two acres of land is sufficient to build a 5 MW green hydrogen facility, an official at RBM said, adding that it has sufficient land in all the tree spots where capacity will be set up.

The Government will soon invite bids for 10 Gigawatt of battery energy storage projects, said MHI Joint Secretary Vijay Mittal on Friday
 

New Delhi: The Government will soon invite bids for 10 gigawatt of battery energy storage projects, an official said on Friday.

The move will strengthen India's position in the energy storage segment, which is in a developing stage.
 

Vijay Mittal, Joint Secretary, Ministry of Heavy Industries, said, "The ministry will soon come out with a 10 gigawatt RFP (request for proposal) for those who are working on the energy storage part of it for grid-scale energy storage systems...so that we have...indigenous capability for manufacturing of battery energy storage system compatible with advanced chemistry cells."

The official was addressing the 'Summit on Lithium-Ion Batteries', organised by industry body India Energy Storage Alliance (IESA), virtually.

The ministry is leading the mission of indigenous manufacturing of chemistry cells in the country as part of electric vehicle (EV) initiative. The goal is to achieve net zero by 2070 and reduce the need for imports of internal combustion engine (ICE) vehicles, addressing environmental concerns, he said.
 

Mittal further said that the government has allocated over 40 gigawatt-hours out of 50 gigawatts to various original equipment manufacturers (OEMs) for indigenous manufacturing of advanced chemistry cell under ACC-PLI scheme.

Over 300 industry leaders gathered at the event to discuss topics like R&D, innovation, manufacturing, supply chain, raw materials, stationary energy storage, electric mobility, recycling, among others.

New Delhi: State-run Bharat Coking Coal Limited (BCCL) has plans to add 48 MW of solar power by the end of financial year 2024-25. On Friday, Minister of State for Coal Satish Chandra Dubey inaugurated 51 rooftop solar power plants of BCCL of cumulative capacity of 2.428 MW. “In a significant leap towards sustainable energy and reducing carbon emissions, Union Minister of State for Coal and Mines, Shri Satish Chandra Dubey, remotely inaugurated 51 rooftop solar power plants of Bharat Coking Coal Limited (BCCL) from Ranchi, under the ongoing Special Campaign 4.0. With a cumulative capacity of 2.428 Mega Watts (MW), these solar installations mark another milestone in BCCL’s commitment to fostering a greener and more self-reliant India,” the Ministry of Coal said.

‘Rooftop solar installation good example of utilisation of unused building spaces’

Speaking on the occasion, Dubey commended BCCL’s efforts, saying “The installation of rooftop solar plants by BCCL is a good example of utilisation of unused building spaces.” BCCL CMD Samiran Dutta exuded optimism for the company’s advancements in renewable energy (RE). He said that this landmark achievement signifies BCCL’s enduring commitment to not only securing the nation’s coking coal requirements but also ensuring that the journey forward is sustainable and eco-friendly. He added that BCCL is proud to contribute to India’s renewable energy mission, and these 51 solar plants are a reflection of its long-term vision for a greener future.

BCCL, a key subsidiary of Coal India Limited (CIL) and India’s largest producer of coking coal, has 1.66 MW of Rooftop Solar Plants installed and commissioned at various locations in the company at present.

BCCL RE capacity addition plan for FY2024-25

In addition to the 2.428 MW Rooftop Plant, a 3 MW Rooftop Solar Plant is planned for the financial year 2024-25. Furthermore, a 20 MW ground-mounted solar project is currently being installed at Dugdha Washery, with expected completion by 2024, and a 25 MW ground-mounted solar project at Bhojudih Coal Washery, scheduled for completion by March 2025.

“With this, BCCL reinforces its commitment to reducing its environmental footprint while balancing its core mission of coal production with innovative green initiatives. The company's consistent focus on adopting new technologies, along with its dedication to operational excellence, continues in both the energy and mining sectors,” said the statement.

To reduce the delay in disposal of land acquisition disputes in Talcher coalfields, the Cabinet has approved the formation of a full-time Special Tribunal in Talcher, Odisha

New Delhi: The Union Cabinet has approved the formation of a full-time Special Tribunal at Talcher in Odisha for effective and speedy disposal of cases related to land acquisition and compensation in the Talcher coalfield. The tribunal will have the powers of a civil court. “The Cabinet, led by Prime Minister Shri Narendra Modi, in its meeting held on 3rd October 2024, approved the creation of the post of Presiding Officer for a full-time Special Tribunal at Talcher, Odisha, under the Coal Bearing Areas (Acquisition & Development) Act, 1957. This decision is aimed at ensuring the effective and speedy disposal of cases related to land acquisition and compensation in the Talcher coalfield, benefiting farmers and land owners in the region,” said the Ministry of Coal in a statement on Friday.

‘Special Tribunal in Talcher will ensure faster resolution of land acquisition disputes’

Explaining the rationale behind the creation of the full-time special tribunal, the ministry said, “Currently, the part-time tribunal at Talcher, has been handling an increasing number of land acquisition and compensation disputes resulting in a backlog of 860 cases as of May 31, 2024. To address this, the government is setting up special Tribunal ensuring faster resolutions and greater satisfaction for farmers & landowners.”

“The appointment of a full-time Presiding Officer will address these issues by expediting the resolution of disputes related to land acquisition and compensation, ensuring quicker justice for affected landowners, and helping to clear the long-standing backlog. Moreover, the enhanced rate of case disposal will contribute to public accountability, strengthen the rule of law, and improve the ease of living in the region. It will also support the Government’s broader objective of increasing coal production by resolving land-related disputes more efficiently,” said the government.

Powers of Talcher’s Special Tribunal

The Special Tribunal will have the powers of a civil court, allowing it to summon witnesses, examine documents, and issue commissions for witness examinations. “By swiftly resolving these cases, the tribunal will not only bring relief to farmers and landowners but also support coal mining efforts, contributing to economic growth and energy security. This approval by the Cabinet and with the guidance and support of Minister of Coal, underscores the Government’s commitment to ensuring justice for all stakeholders, promoting efficient legal resolutions, and accelerating coal production in Talcher, a key coal mining region of the country,” said the Ministry of Coal.

While timing the exact bottom or top is of any sector is unrealistic, being part of the cycle can still generate substantial returns. The key is acknowledging the inherent cyclicality of businesses.
 

Shares of most Hong Kong-listed Chinese property stocks surged to their highest levels in over a year, as China’s stimulus rally continues.

The real estate sector was the biggest gainer in the Hang Seng Index, with Longfor Group Holdings being the top mover, adding over 25%.

Shares of other real estate developers also saw significant gains. Defaulted developer Shimao Group skyrocketed over 97% while Kaisa Group jumped 45.48%, both notching their highest prices in more than a year.  

Similarly, China Overseas Land & Investment climbed 14.33% to hit its highest since last September. China Vanke rose 45.5%.

Hang Lung Properties and China Resources Land gained 12.65% and 7.68% respectively. 

The wider Hang Seng Index added 5.46%, while the Hang Seng Mainland Properties Index surged over 11.69%. Mainland Chinese markets are closed for the Golden Week holiday.
 

Over the weekend, major cities in mainland China introduced easing measures to enhance homebuyer confidence, following a series of policy stimulus initiatives from the central bank last Tuesday.

Guangzhou’s city government announced that all restrictions on home purchases would be removed starting Monday. Shanghai’s reduction of the required tax-paying period also came into effect on Tuesday. Shenzhen has also relaxed purchasing restrictions, allowing buyers to purchase one more apartment in select districts. 

“Investors are betting that the recent policy relaxation will lead to a home market recovery, which should help developers with sales and prices,” Gary Ng, senior economist at Natixis, told CNBC. Still, he sees challenges with these expectations materializing into reality, especially with inventory pressure in non-tier one cities.

“If home sales do not improve in the next few weeks, it can go back to square one,” he said.

While these measures will help stabilize the property market, lifting prices and reviving demand will be a tall order, Morgan Stanley wrote in a note published Wednesday.

“The continued drag from the property sector will leave a sizable shortfall in demand behind, keeping growth below target,” the investment bank’s Asia-Pacific economists wrote.

Real estate used to account for over 25% of China’s GDP, but it has faced a prolonged decline since 2020 following Beijing’s crackdown on the sector’s excessive debt.

Chinese officials have ramped up support to alleviate financial pressures on households and stabilize the embattled real estate market. However, these previous initiatives have not resulted in significant turnarounds.

“There are more signs of stabilization, but it does not change the fact that China’s real estate sector has entered the twilight of the fast-growth era,” said Ng.

Steel Secretary points to surge in China shipments, especially via Asean nations exploiting FTA

Steel Ministry is seeking a 100 per cent increase in basic customs duty on the import of the metal, raising it to 15 per cent, from the existing 7.5 per cent. Acknowledging that there is a surge in imports from China, to one-third (33 per cent approx) of steel imports, the Ministry has cited its own internal assessment, and recommended to the Finance Ministry that safeguards, Similar to those implemented by some other nations in the European Union, the USA and others, should be considered.

This is the first time that the Steel Ministry is acknowledging the surge in the import of finished steel from China, which the industry often refers to as dumping and claims is distorting domestic market dynamics.

The Ministry’s assessment notes that “all-new capacities being added to the region are mainland Chinese investments targeting export markets like India.”

In a letter dated September 24 to Revenue Secretary Sanjay Malhotra, Union Steel Secretary Sandeep Poundrik has urged “intervention” to address the “pressing issue” of the surge in imports and to explore the possibility of doubling basic customs duty (BCD) “to 15 per cent on steel products to safeguard the interests of the domestic steel industry”.

The 12–page letter (and internal assessment of the Ministry), a copy of which has been reviewed by businessline,also detailed out the Steel Ministry’s internal assessment on the issue of Chinese imports and rising shipments of steel “being diverted” from other ASEAN nations, particularly Vietnam, as the nation continues to “exploit” the zero customs duty benefit under the India – ASEAN Free Trade Agreement.

Although markets haven't priced in this threat yet, analysts cautioned that a broader conflict could spark a correction, especially if crude prices surge

As Indian markets continued their record-breaking rally, overbought conditions remain a key concern. However, a significant risk that equities, crude, and commodities seem to be overlooking is the escalating conflict in the Middle East. Following an Israeli airstrike that killed Hezbollah leader Hassan Nasrallah, Iran’s supreme leader vowed "more crushing blows" in retaliation. Although markets haven't priced in this threat yet, analysts cautioned that a broader conflict could spark a correction, especially if crude prices surge.

Sugandha Sachdeva, Founder of SS WealthStreet, emphasised that geopolitical tensions in the Middle East present a substantial risk to global oil prices, particularly given the vulnerability of the Strait of Hormuz—a vital passageway that carries nearly one-fifth of the world’s oil supply.

The strait, often at the center of global tensions, is a crucial shipping route responsible for nearly 30 percent of global oil trade. Concerns about potential disruptions have grown after Iran’s threats against Israel.

Sachdeva warned that any disruption in the Strait of Hormuz could severely affect global oil flows and freight movements, exacerbating logistical challenges. For India, which imports around 82 percent of its oil, such disruptions could cause crude prices to jump from current levels of $71 per barrel to as much as $85-87 per barrel.
 

Jigar Trivedi, Senior Research Analyst for Currencies & Commodities at Reliance Securities, projected Brent crude prices to rise to $78-80 per barrel if Iran, a key OPEC producer, becomes directly involved in the conflict. However, he noted that the potential upside could be capped by OPEC’s planned production increases and Libya's resumption of oil output after a month-long halt.

Since the start of the Hamas-Israel conflict last year, disruptions in the oil market have been limited. Increased production from the US, Canada, and Guyana have added to supply, along with weakening demand from China. However, both experts pointed out that a sharp escalation in the conflict could lead to crude prices surging by over 20 percent.

Ambareesh Baliga, an independent market analyst, warned that such a rise in crude prices would negatively impact Indian market sentiment and could trigger a broader correction. Oil marketing companies (OMCs) would be hit hardest, facing pressure on their marketing margins, although Baliga did not speculate on the extent of the correction.

Geopolitical risks also tend to boost demand for safe-haven assets like gold. Trivedi noted that this year’s rally in gold and silver has been fueled by multiple factors, with rising geopolitical tensions enhancing their appeal.

Trivedi predicted COMEX Gold could reach $3,000 per ounce within four to five months, while MCX Gold could trade between Rs 76,000-78,000 per 10 grams. Sachdeva similarly forecasted gold prices rising to $2,880 per ounce on COMEX and Rs 78,000 per 10 grams on MCX this year.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Oil rose for a third day as traders assessed supply risks in the Middle East, with Israel expected to make a retaliatory strike against Iran following Tehran’s missile barrage earlier this week.
Brent crude climbed toward $75 a barrel after advancing almost 3% over the prior two sessions, while West Texas Intermediate was near $71. Israel has threatened reprisals against Iran, although US President Joe Biden has said the country should hold off from attacking its nuclear facilities.

The oil market has been transfixed by the latest crisis in the Middle East, which comes after a year of turmoil as Israel faces off against Iran and its proxies in Gaza, Lebanon, Yemen and elsewhere. The region accounts for about a third of global supply, and traders are concerned the latest escalation could hit flows if energy facilities are attacked or supply routes blocked.

A major strike by Israel on Iran’s oil-exporting capacity could take 1.5 million barrels of daily supplies off the market, according to Citigroup Inc. If Israel struck minor infrastructure, such as downstream assets and storage facilities, between 300,000 and 450,000 barrels of output could be lost, analysts including Francesco Martoccia said in a note.

The latest price spikes caused a gauge of Brent’s implied volatility to surge to the highest in nearly a year. Options markets have also taken on a bullish tone, with Brent skews now favoring calls — which profit when prices rise — over the opposite puts as of Wednesday’s close.

Beyond the crisis, there are signs of ample supplies. OPEC+ plans to restore some of its shuttered capacity, with increases set to start from December after a two-month delay. In the US, meanwhile, official data showed crude inventories unexpectedly rose by 3.9 million barrels last week, their biggest increase in about five months.

• Brent for December settlement rose 0.9% to $74.55 a barrel at 8:19 AM in Singapore.


• WTI for November delivery gained 1% to $70.80 a barrel

The deal is important for the Indian Navy given the threats from Pakistan and China.

Ahead of National Security Adviser Ajit Doval's Paris visit, France has submitted its final price offer to India for selling 26 Rafale Marine jets. Now, the Defence Ministry of India will have to take the final call on the given bid. News agency ANI reported citing defence sources, that France has submitted the best price offer for the project and a significant price reduction has been given after tough negotiations in the proposed contract.

India and France are in talks to finalize a deal for the purchase of 26 Rafale Marine jets, intended for deployment on the INS Vikrant aircraft carrier and at various other bases. Negotiations continued last week during a visit by a French delegation to New Delhi for further discussions with Indian officials. The agreement is set to be discussed at the upcoming India-France Strategic Dialogue, where the Indian National Security Advisor will meet with his French counterparts in Paris starting tomorrow.

The deal is important for the Indian Navy given the threats from Pakistan and China. The navy has been exploring options to strengthen its maritime strike capability. India has also approved deviations in the letter of request, which is the tender document equivalent in government-to-government deals, like the integration of the indigenous Uttam radar in the jets for the Indian Navy.

According to the report, integrating these systems would have taken approximately eight years and incurred a significant cost to India, payable to the French side for the work. India had also requested France to integrate indigenous weapon systems onto the Rafale jets, including the Astra beyond-visual-range missiles and Rudram anti-radiation missiles.

The sources added that the price for the deal had been based on the agreement over rate inflation to be taken into account and would be using the previous deal for 36 Rafale fighter aircraft for the Indian Air Force as the basis. Some of the Indian Air Force requirements have also been incorporated in the naval deal which will include around 40 drop tanks and a small number of workstations for the planes.

His distinguished career, spanning nearly four decades, has seen him serve in numerous command, staff, instructional, and foreign assignments.

New Delhi: Air Chief Marshal Amar Preet Singh, an ace fighter pilot with over 5,000 hours of flying experience, assumed command as the new Chief of the Indian Air Force (IAF) on Monday, succeeding Air Chief Marshal V R Chaudhari. The transition comes as Air Chief Marshal Chaudhari retired after leading the force for three years.

The Ministry of Defence shared a video showing Air Chief Marshal VR Chaudhari handing over command of the IAF to Air Chief Marshal Amar Preet Singh.

Born on 27 October 1964, Air Chief Marshal Singh was commissioned into the fighter pilot stream of the IAF in December 1984.

His distinguished career, spanning nearly four decades, has seen him serve in numerous command, staff, instructional, and foreign assignments. Notably, he is an alumnus of prestigious institutions such as the National Defence Academy, Defence Services Staff College, and National Defence College.

In his illustrious career, Singh has gained expertise as both a qualified flying instructor and an experimental test pilot. He has logged over 5,000 hours flying a diverse range of fixed and rotary-wing aircraft. His operational command experience includes leading a frontline fighter squadron and an airbase.

As a test pilot, he headed the MiG-29 upgrade project in Moscow and was the Project Director (Flight Test) at the National Flight Test Centre, overseeing the flight testing of the indigenous Light Combat Aircraft (LCA) Tejas.

Tata Power on Monday said it has inked an initial pact with the Rajasthan Government for investment of Rs 1.2 lakh crore, including Rs 75,000 crore in green energy

New Delhi: Tata Power on Monday said it has inked an initial pact with the Rajasthan government for investment of Rs 1.2 lakh crore, including Rs 75,000 crore in green energy, in the state's power sector.

The 10-year plan aims to support Rajasthan's transformation into a power surplus state, providing 24/7 clean, affordable, and reliable power supply.

Investments will be made in renewable energy projects and manufacturing, transmission, distribution, nuclear power, rooftop installations, and EV charging, a company statement said.

The MoU was signed during the 'Rising Rajasthan' Investor Meet in New Delhi on Monday.

An amount of Rs 20,000 crore will be invested in the state transmission and distribution area to modernize the grid infrastructure, reduce energy losses, and improve power quality across the state.

Besides, Rs 10,000 crore will be invested for transmission systems exploring opportunities to develop nuclear power plant.

Nearly Rs 75,000 crore will be for renewable energy projects.

An investment of Rs 1,000 crore has been earmarked for setting up 1 lakh EV charging points across Rajasthan.

Rooftop solar power for 10 lakh households will support the PM Surya Ghar Yojana.

The MoU will have a transformative socio-economic impact, creating over 28,000 direct jobs in the state.

Tata Power already has a significant footprint in Rajasthan, with a robust portfolio of energy projects. The company has commissioned 1 GW of solar projects and 185 MW of wind projects in the state, along with 130 MW of rooftop solar installations.

Hygenco Green Energies has floated India’s largest tender for the procurement of Renewable Energy (RE) for its upcoming Green Ammonia project

Gurugram: Hygenco Green Energies has floated India’s largest tender for the procurement of Renewable Energy (RE) for its upcoming Green Ammonia project. “Hygenco Green Energies Pvt Ltd, a pioneer in producing low-cost green hydrogen, has invited bids for over 1,125 Megawatt (MW)/ 1.1 Gigawatt (GW) of renewable energy, to support its upcoming Green Ammonia Project. This is the largest tender for procuring renewable power for a green ammonia project in India, reinforcing Hygenco’s continued commitment to sustainability,” said the company in a statement on Monday.

Hygenco aims to procure 625 MW from solar PV projects and 500 MW through wind power. “The tender offers favourable terms to minimise risk for developers and ensures a transparent procurement process, attracting a broad range of participants in the renewable energy sector,” the company said. Bidders can evaluate the tender on Hygenco’s official website, https://www.hygenco.in/, it added.

Amit Bansal, Co-Founder and CEO of Hygenco, said, “As one of the very few, pure-play Green Hydrogen companies with operational assets, Hygenco is rapidly moving towards its mission of facilitating India’s energy security and achieving climate goals. This large tender of over 1 GW is amongst the many firsts achieved by us and demonstrates both our ambition and action in scaling up India’s Green Hydrogen and Green Ammonia market.”

Headquartered in Gurgaon, India, Hygenco develops and deploys scaled-up commercially attractive green hydrogen and green ammonia assets. Hygenco, which has deep capabilities in designing, building, and operating Green Hydrogen projects, has commissioned India’s first Green Hydrogen project in Hisar, which was inaugurated by Union Minister of Civil Aviation and Steel earlier this year. Hygenco is looking to invest USD 2.5 billion over three years to set up Green Hydrogen projects in India.

The Government on Monday raised the price of natural gas produced from difficult areas like deep sea KG-D6 block of Reliance Industries
 

New Delhi: The Government on Monday raised the price of natural gas produced from difficult areas like deep sea KG-D6 block of Reliance Industries, marginally to USD 10.16 per million British thermal unit in line with international trends, an official notification said.

However, the price of gas that is used for making CNG for fuelling automobiles or piping to household kitchens for cooking purposes will remain unchanged due to a price cap that is set at 30 percent less than market rates such as that paid to Reliance.

For the six-month period starting October 1, the price of gas from deep sea and high-pressure, high-temperature (HPTP) areas has been raised to USD 10.16 per mmBtu from USD 9.87 per mmBtu during April-September, oil ministry's Petroleum Planning and Analysis Cell (PPAC) said in a notification.

The increase follows three straight bi-annual reductions in rates for difficult fields. Price was for six months beginning October 1, 2023, slashed 18 percent to USD 9.96 per mmBtu from USD 12.12 for the April to September 2023 period. Prior to that, the rate was a record USD 12.46 from October 2022 to March 2023.

The government bi-annually fixes prices of the locally-produced natural gas -- which is converted into CNG for use in automobiles, piped to household kitchens for cooking and used to generate electricity and make fertilisers.

Two different formulas govern rates paid for gas produced from legacy or old fields of national oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) and for newer fields lying in difficult-to-tap areas, such as deep sea.

The ceiling price of gas from difficult fields is fixed on April 1 and October 1 each year.

In April last year, the formula governing legacy fields was changed and indexed to 10 percent of the prevailing Brent crude oil price. The rate was, however, capped at USD 6.5 per mmBtu.

Rates for legacy fields are now decided on a monthly basis. For October, the price came to USD 7.48 per mmBtu but because of the cap, the producers would get only USD 6.5 per mmBtu, the PPAC said.

The price for difficult area gas continues to be governed by the old formula that takes a one-year average of international LNG prices and rates at some global gas hubs with a lag of one-quarter.

International prices had remained range-bound in 2024 and so it will translate into marginally higher prices for difficult fields starting October.

India is aiming to become a gas-based economy with the share of natural gas in its primary energy mix targeted to rise to 15 percent by 2030 from the existing level of around 6.3 percent.