CPI leader Gurudas Dasgupta has fired a fresh salvo against Petroleum Minister Veerappa Moily and Reliance Industries limited (RIl) chief Mukesh Ambani for allegedly reducing the production of natural gas from the KG Basin.
Addressing the media on Tuesday, Dasgupta accused Moily of putting pressure on the Petroleum Secretary to write a favourable note to stop the adjudication process related to a $1 billion fine imposed on RIl for violating contractual obligations with regard to volume of production.
Dasgupta alleged that Moily wanted to stall the adjudication and start negotiations to favour Mukesh Ambani.
Dasgupta also alleged that Moily was trying to ignore the recommendations of the CAG and Director-General Hydrocarbons (DGH) for retrieving the majority of the area allotted to RIl in KG Basin.
“I thought the Prime Minister would change Moily’s portfolio in the Cabinet reshuffle. But Manmohan Singh has not even replied to my letters on the collusion between Moily and Ambani,” said Dasgupta, releasing his new letter to the Prime Minister to the media.
Accusing Mukesh Ambani of deliberately decreasing the production of natural gas from the KG Basin, the CPI leader alleged that Jaipal Reddy was shunted from the Petroleum Ministry for slapping a $1 billion fine on RIl.
Reddy had slapped the fine notice on RIl for reducing the production of natural gas from KG Basin. According to the contract, RIl has to pay a fine, if the target of production was not met. As RIl opted for adjudication, a three-member panel for adjudication was formed.
This included one member each from the Government and RIl side. As per the contract, the third member has to be mutually acceptable to both sides. But so far, the third member has not been appointed.
“The Government appointed former Chief Justice VN Khare and RIl named former Supreme Court Judge SP Bharucha. The third member was to be decided by these two members. But before he could be appointed Jaipal Reddy was shunted out in November due to hectic lobbying by RIl,” said Dasgupta.
The veteran MP said Ambani reduced production deliberately because he hoped to get a good price next year by lobbying. RIl will produce more only when the price of gas will increase.
“The move to increase natural gas price has come ahead of the general elections, and we all know Reliance is the biggest financier of all political parties. That is why they are keeping quiet on Moily’s attempt to favour Mukesh Ambani. The Union Finance Minister and Planning Commission chief are part of this conspiracy to loot the nation,” he said.
Detailing the statistics of production from KG Basin, Dasgupta said except for the first year in 2009, RIl never met the specified targets as per the contract. In the letter to the Prime Minister, he said at present the production is just 19 per cent of the target as against 25 per cent the previous year. .
“Now the production has reached 17 per cent of the target only. So as per the contract Mukesh should be fined $3 billion. Similarly, for previous year’s non-achievement of target, Reliance should be fined $1.7 billion. But this corrupt Government wants to negotiate with a criminal. You are allowing a thief to get away with stolen material,” said Dasgupta.
RIl was allotted a 7,000 sq km area in the KG Basin. As per the contract, after the discovery of gas, the rest of the area should be returned to the Government. In 2012, the CAG recommended that 50 per cent of the area should be retrieved from RIl. Recently DG Hydrocarbons also directed RIl to return of 86 per cent of the area to the Government.
“Reliance is still holding the area. After exploration and discovery of gas they have to give back the rest of the area to the Government. As per the contract, they can retain only the area where gas was found. Now DG Hydrocarbons has directed them to return 86 per cent land. Moily now says, he will not go into the technicalities of the DG’s directions. He is trying to ignore the CAG’s and DG’s findings to favour Mukesh Ambani in retaining the area,” said Dasgupta.