An Empowered Group of Ministers (EGoM) will hold a meeting under the chairmanship of Finance Minister Pranab Mukherjee to review the country’s natural gas allocation policy.

The meeting is to review the allocation after a severe fall in output form Reliance Industries’ KG-D6 block. The government says that the company is to blame for the fall in production but Relaince says that geological complexities caused the fall in production.

Meanwhile, Reliance Industries and BP are planning to submit a new field development plan for the entire D6 block by the month of June. The new plan is aimed at increasing the output and cut costs and revive the tough relationship between the company and the Indian authorities.

The EGOM will also consider recommendations from the Saumitra Chaudhuri report for reserving or preferential allotment of domestically produced natural gas only to fertilizer and power plants.

The panel will also consider suggestions offered by the oil ministry. The oil ministry has proposed to stop gas supplies to power producers that do not sell electricity at regulated tariffs. It also said that gas should only be allocated to urea fertilizer plants and the government should stop supplying phosphates and potassium fertilizer producers.