The government had offered investors freedom to sell oil and gas to any consumers at market-determined prices under the terms of the production sharing contracts (PSCs) in the new exploration and licensing policy (Nelp). But, the evolution of government policies in the sector over the last few months, though ostensibly within the boundaries of the terms of PSCs, is in sharp contrast to these stated intentions, and this may even dampen investor sentiments. The gas price formula approved by the government in the case of the PSC for the D6 well at the K-G basin, with the biddable parameter set at zero, binds the producer to a price which is subject to review only after five years. Similarly, the freedom to market would be curtailed by any