Prayas Energy Group was requested to provide a paper on natural gas utilization and pricing as an input to the Ashok Chawla committee on Allocation of Natural Resources. This paper explored issues such as upstream block licensing, gas utilization and pricing, and making the best use of potential shale gas reserves in the country. One of its key recommendations was that gas should be used in sectors such as transport and cooking rather than for base load power generation. This would allow gas pricing to be freed and also help reduce subsidies and improve energy security. However, some preconditions, such as creating a competitive shippers market, unbundling of operations and a nation-wide gas grid, must be satisfied before prices are freed. It recommended much greater transparency in the functioning of management committees of oil and gas blocks, better compensation for those affected by oil and gas drilling, ways to improve investor interest and also recommended caution and transparency in shale gas exploration.    

This paper was followed by a note on gas usage and pricing submitted to the Deputy Chairman of the Planning Commission and an article in Financial Express dated 10th June 2011