The gas market in India is faced with twin challenges on supply side - increasing indigenous production as well as importing at affordable price, Vivek Rae, Secretary Petroleum & Natural Gas said.

Talking about the challenges which India faces at the 8th Asia Gas Partnership Summit 2013, here he said that, gas demand is largely dependent on affordable price.

Stating that gas demand is un-constrained, but moment one does a reality check, it is found that affordable price is what consumers want

Affordable price is the price at which competitive fuel like coal (used for power generation), diesel (auto fuel).

As far as imports are concerned long term contracts price of which are linked to crude oil are difficult to sustain, he said adding that as a consumer India is looking for flexibility in contracts.

Demand risks need to be looked at before infrastructure like LNG terminals are set up, Secretary said.

Rae said that on the supply side India has taken steps. He said that measures to strengthen the data base to encourage domestic gas exploration.

"Attractive and stable regime we are committed to," he added.

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