CPI(M) on Monday urged Prime Minister Narendra Modi to reject the UPA’s decision on gas pricing and not to increase the price of the domestically produced natural gas. Citing steep increase in the power and fertilizer sector due to increase in gas price, party said the recommendation of Rangarajan panel for doubling the price of natural gas price was a dubious one.
In a letter to Prime Minister, CPI(M) politburo member Tapan Sen alleged that one member of the Rangarajan panel was an associate of Mukesh Ambani funded Observer Research Foundation (ORF).
“An impression was also sought to be created by previous Government that the price formula was fixed by a committee of experts led by Rangarajan and could not therefore be questioned. But the very composition of the Committee itself evokes certain inescapable questions involving conflict of interest vis-a-vis the task undertaken. It is reported that one member of the Rangarajan Committee, is an associate of the Observer Research Foundation, a think-tank funded by Mukesh Ambani’s Reliance. Is this ethicalIJ On this ground as well the matter needs fresh consideration by your Government,” said Sen, who is also a member of Parliament’s Standing Committee on Petroleum and Natural Gas.
The CPI(M) leader also pointed out that the pervious Standing Committee on Finance led by BJP leader Yashwant Sinha had categorically objected any sort of increase in price of the domestically produced natural gas.
“I had written several letters to your predecessor Prime Minister as well as requesting not to allow such huge price hike of natural gas based on a tailor- made formulae just to facilitate windfall gains for contractors handling natural gas as well national resources. Natural gas is being produced domestically and must be priced based on cost plus reasonable returns on investment.
Any other methodology of pricing having no relevance with the cost of production in the name of market determined or arm’s length basis, tailor-made to benefit the contractor in bound to have perverse impact on the economy as well as people at large,” said Sen, pointing out that the Government had to doll out around one lakh crore worth subsidy for the benefit of Mukesh Ambani’s RIl.