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Making a Deal with Qatar is in Best Interest of India to Get Benefit

NEWS

India has asked its largest liquefied natural gas (LNG) supplier Qatar to cut prices to match a 40 per cent slump in global rates as well as waive penalty for not buying all of the contracted fuel. 
Source: ET

SNP Insight

The high gas pricing of long term contract with Qatar over the spot market pricing deny the benefit of to India. So, looking at the present scenario of falling gas price in international market, it is India’s best interest to take diplomatic route to strike a common ground to modify the old contact terms to avail the benefits. If India able to get a fair deal from Qatar on gas price then it’ll help the gas importing companies, power and fertilizer companies in a big way . Also this will reduce the external spending of the country and help in reduce the fiscal deficit. And this may give positive boost to the economy of India.
Source: SNP Infra Research