New Delhi In a rare administrative move, petroleum and natural gas minister Veerappa Moily has withdrawn a note circulated by his predecessor Jaipal Reddy to the members of a ministerial panel, which had opposed an immediate price hike sought by Reliance Industries (RIL) for the gas from its KG-D6 block.

Ministry sources attributed the decision to the matter being considered by the six-member Rangarajan committee, but is widely perceived as a sign of moderation in the way the government views RIL’s demand. Moily’s move also reflects the government’s anxiety to ramp up domestic gas output, crucial for the energy-starved economy.