In a surprise move, the Union government on Monday announced that it will not pay natural resources companies the gas price for natural gas.
The government said the government has already set up a panel to review the issue.
The Centre said it is setting up a committee to review natural gas pricing and it will submit its report to the Centre by March 31.
The panel, headed by retired Chief Minister N Chandrababu Naidu, will be chaired by senior economist Ajay Sahni.
It will be asked to recommend ways to increase revenues from natural gas and also recommend measures to reduce the prices of natural gas by lowering the price of oil and gas, the finance ministry said.
The government, in its budget statement for April, had said it will review natural resources prices and if any of these measures fails, it will pay natural resource companies higher prices.
The National Energy Corporation (NEPC) has already been given a budget of Rs 1,000 crore for natural resources and this is not enough for natural resource projects.
However, the government did not say how much of the money will be spent for natural energy projects.