NEW DELHI -- India's federal government Monday proposed to reinstate tax breaks for natural gas production and offer full tax exemption for its transportation as part of efforts to boost supplies of the cleaner-burning fuel to homes, factories and automobiles.

It also proposed to build a national gas grid to transport gas around the country and to review India's system of setting gasoline, diesel and kerosene prices, Finance Minister Pranab Mukherjee said in his budget speech for this fiscal year.

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