Continuing his exposés on the “KG Basin loot”, veteran CPI leader Gurudas Dasgupta on Monday accused Petroleum Minister Veerappa Moily of citing “geological uncertainty” as a reason for shortfall of production of natural gas by Mukesh Ambani-headed Reliance Industries limited (RIl).
In a letter to the PM Manmohan Singh, he alleged that Moily’s move was to dole out the new price to RIl, which was objected by finance and petroleum ministries.
“It has appeared in the Press that Petroleum Ministry has revised its earlier stand and has now circulated a Cabinet note to effect that RIl shouldn’t get revised price on gas till the reasons for the fall in output are ascertained. It is further learnt that the Petroleum Ministry has proposed that if it reaches the conclusion that the fall was due to geological difficulties, then they would be allowed the benefit of the price increase to RIl.
“The formulation of Cabinet note in this fashion has exposed duplicity of Petroleum Minister,” said Dasgupta, pointing out that Petroleum Ministry officials and the regulator had consistently taken a stand blaming RIl for shortfall in the mandated production and issued notice for fine of one billion dollar.
Accusing Moily of outrightly batting for the RIl’s demands, he urged the Prime Minister to intervene in the interest of the nation to save the exchequer. “You are already aware that the present Petroleum Minister has deliberately stalled the arbitration proceedings for the recovery of the penalty of one billion dollars. By trying to reverse the earlier view of the Government, he is trying to weaken the arbitration proceedings and given an alibi to RIl to get away with the grave breach of the production sharing contract with Government,” said Dasgupta.