Modi's gas gambit faces a big hurdle

New Delhi

INDIA'S first increase in natural gas prices since 2010 to reverse sliding production leaves a key weakness unresolved: consumers who don't pay enough for power.

Prime Minister Narendra Modi raised the gas tariff by about a third on Oct 18, part of his biggest energy policy changes since taking office in May. Indebted utilities face the higher charge even as they're required to sell electricity below cost, raising the risk they'll favour less-expensive sources of power.