New Delhi, Oct 8 (IANS): India's decision to adopt a standard price discovery mechanism for natural gas through a e-bidding platform has been welcomed by investors across the globe as a positive reform initiative that would encourage investment and propel growth.

Rating agency Moody's has also put the new dispensation a credit positive move for India's oil and gas sector that will help to boost production in one the largest energy consuming nation.

"The reform is credit positive for India's oil & gas sector, as it allows affiliates of gas producing companies to offtake gas and overall should help boost production," said Vikas Halan, Associate Managing Director, Corporate Finance Group, Moody's Investors Service.

"However, we do not expect the pricing reform to provide immediate relief to domestic gas producers, as large players such as ONGC and OIL produce most gas on nomination blocks which are for now exempt from the revised policy," he added.

The cabinet on Wednesday approved a standard e-bidding procedure for market based price discovery of gas across various contractual regimes.

This will allow producers to choose bidding platform for price discovery under a transparent mechanism.