In 2006, Mani Shankar Iyer was removed and Murli Deora brought in to increase RIL capex from$ 2.39 billion to $ 8.8 billion and to increase gas price from $2.34 per mmBTU to $ 4.2 per mmBTU.
In 2012, Jaipal Reddy has been removed and Moily brought in to increase gas prices from $ 4.2
per mmBTU to $ 14.2 mmBTU and to condone RIL’s blackmailing of reducing gas production.
Huge benefits given to RIL in last one decade despite flagrant violations of various agreementsby RIL. Benefits to RIL causing serious price rise in the country.
Both BJP and Congress involved. BJP signed a sweet deal with RIL in 2000. Congress faithfully implemented it.
If RIL demand of increasing the gas price to $ 14.2 is accepted, it would lead to shut down of several gas based power plants and increase in power and fertilizer prices. It would result in Rs43,000 crores of additional benefits to RIL.
In the Nira Radia tapes, Ranjan Bhattacharya
(Vajpayee’s son in law)
is heard telling Nira that MukeshAmbani told him
–“Congress to ab
hai.” Facts below show that both Congress and BJP are in
his pocket.Reliance Industries Ltd (RIL) has the contract to extract oil from KG Basin. Under an agreement of 2009with the government, they are supposed to sell gas at $ 4.2 per mmBTU upto 31
March 2014. Midwaynow, RIL is demanding that the price be increased to $ 14.2 per mmBTU. Jaipal Reddy resisted that andhe was thrown out.
Jaipal Reddy had prepared a note for EGOM, in which he mentioned that acceptance of RIL’s demand
would mean an additional profit of Rs43,000 crores ($8.5 billion) to RIL(in 2 years) at current levels of low production. Most of this gas is used in fertilizer and power production. Increasing gas price wouldmean an additional financial burden of Rs 53,000Crores ($ 10.5 billion) on central and state government(copy of relevant page of EGOM note is attached as annexure 1). This would in turn mean higherelectricity and fertilizer prices in the country or a higher subsidy burden.In order to pressurize the government, RIL substantially reduced its production of natural gas. Totalconsumption of natural gas in the country is 156 mmscmd. According to agreement, RIL was supposedto produce 80mmscmd (more than 50% of the total demand) from 2009. However, they are producing just 27 mmscmd, almost a third of their commitment. Production has been artificially kept low toblackmail the government. They are not just hoarding the gas, but also forcing various consumers to buygas from abroad. Gas from abroad costs around $ 13 per mmBTU.
RIL’s stand is simple –
“hum to gas $14.2 par hi denge, lena
hai to lo, nahin to jao.”
Who does this gasbelong to? According to Supreme Court of India and the Indian Constitution, this gas belongs to the