‘Gas price hike a mega scam in the making’

Discussion in 'Politics & Society' started by Vishwarupa, May 24, 2013.

  1. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    CPI MP Gurudas Dasgupta says Moily’s plan will lead to windfall profits for Reliance


    Veerappa Moily
    The Petroleum and Natural Gas Ministry is on the verge of perpetrating a “gigantic scam” by advocating a gas price hike that would benefit the Mukesh Ambani-owned Reliance Industries Limited (RIL) to the tune of thousands of crores, said CPI MP Gurudas Dasgupta at a press conference here on Thursday. Mr. Dasgupta has sought the intervention of Prime Minister Manmohan Singh in not only putting an end to this “national loot” but also in deciding on whether Veerappa Moily, the Petroleum and Natural Gas Minister, can continue in office.

    Mr. Dasgupta, who also released a letter to the Prime Minister along with some documents including parts of a Cabinet note on the gas price hike, said while the Rangarajan panel had recommended almost doubling the $4.2 mbtu price, Mr. Moily had gone much further and recommended that the gas price be $8 mbtu in the first year, $10 mbtu in the second year, $12 mbtu in the third year and $14 mbtu in the last two years — close to what RIL had been demanding. “The Petroleum Secretary and other senior officials had opposed the Moily formula three times and returned the file. But Mr. Moily is putting pressure on them to sign the file that contains his recommendations. If the Moily formula is accepted then the country would be faced with an additional subsidy burden of Rs. 76,000 crore, all this to benefit an industrial house. It is high time that the Prime Minister should intervene in the matter and put an end to this betrayal of the nation and remove Mr. Moily from the Cabinet,’’ he demanded.

    Mr. Dasgupta claimed that if RIL’s price of $13.8 mbtu price is accepted, the increase in the subsidy burden would be Rs. 36,000 crore per year and the corresponding profit will be Rs. 32,400 crore for RIL. For the five-year period, this would translate into an additional subsidy outgo of Rs. 1,80,000 crore and an additional profit of Rs. 1,62,000 crore for RIL.

    “This is a gigantic scam that is in the process of being enacted through the generous assistance of the petroleum Ministry. This is national loot of the country’s natural resources and will cause deepest anger in our people. This will be the biggest crime if it is allowed to happen in the tenure of UPA II. I therefore request the Prime Minister to personally intervene to ensure that this is pre-empted,’’ he remarked.

    “What is even more shocking is that Mr. Moily has been pitching for RIL despite strong resistance by officials in the Petroleum Ministry including the Petroleum Secretary to a massive hike in gas prices. He has been in touch with RIL and has been sharing information with them on the issue. His computer should be probed and all communications should be scrutinised. This is superlative corruption and if A. Raja can go for 2G scam, Ashwani Kumar for tampering with the CBI status report, and Pawan Bansal for the Railgate bribery scam, then there is no reason why Mr. Moily cannot be sacked for being hand-in-glove with RIL and causing loss to the national exchequer and the people at large,” he told a crowded press conference here.

    ‘Gas price hike a mega scam in the making’ | The Hindu

    I request Mods to have a separate sticky thread for Scams done by UPA( Headed by Madam S)
     
    Last edited: May 24, 2013
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  3. parijataka

    parijataka Senior Member Senior Member

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    CPI knows very well how this group is in cahoots with Congi govt since last 30 years.
     
  4. pmaitra

    pmaitra Moderator Moderator

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    Extra subsidy burden: Rs. 76,000 crore
    Cost of 1 Arjun Mark I: Rs. 17.2 crore
    Cost of 1 Arjun Mark II: Rs. 37 crore

    So this extra subsidy burden would actually give us 4,400 Arjun Mark I tanks or 2,050 Arjun Mark II tanks.

    :hmm:
     
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  5. Ray

    Ray The Chairman Defence Professionals Moderator

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    Moily has denied that he is assisting RIL.
     
  6. pmaitra

    pmaitra Moderator Moderator

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    This is from the OP.

    Can someone please explain to me, clearly, what exactly is proposed?

    @Sakal Gharelu Ustad, @panduranghhari, @Ray Sir, @Vishwarupa, @parijataka
     
    Last edited by a moderator: May 10, 2015
  7. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    It is not clear from the article how it is a loot.. Need to look at historical contracts to reach any conclusion.

    Will come back later on this one.
     
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    Its the price that was decided earlier and the price being offered now. I think the price are up to what the Iranians were demanding which led to India backing off from the deal. Have to recheck though.

    Won't be surprised if RIL suddenly says it has more gas than what it said it had after recalculating the reserve. Big game in this I think. All talks of no gas and loss in KG basin may be false
     

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