Gas price revision to help Reliance Industries: Gurudas Dasgupta

NEW DELHI: CPI MP Gurudas Dasgupta on Thursday joined issue with petroleum minister M Veerappa Moily on the pricing of KG-D6 gas. The Lok Sabha member from West Bengal alleged gas price revision would only help the Reliance Industries Limited.


In an interview to TOI, Moily, without naming anyone, had alleged import lobbies are opposing gas price revision. Dasgupta in his letter to Moily said the "charge of lobbying is not worthy of a response from me." He also refused the minister's invitation for a discussion on the gas price issue.

Responding to other issues, Dasgupta said the pretext of giving market prices to incentivize investments is an "ill disguised attempt to give huge profits to RIL and permit a loot of the country's natural resources." He asked Moily if profit share of 90%, all costs guranteed recovery and tax free profit not enough incentive.

Dasgupta also questioned Moily's argument that increased production will insulate India from the vagaries of international price fluctuations. "When you are actively supporting import parity prices for RIL, how do we insulate ourselves? Are we not going to become even more exposed to the whims of international oil/gas pricing cartels," he asked.

Dasgupta challenged Moily's contention that he as law minister ensured natural resources are declared as sovereign property. Dasgupta claimed the decision was of the full bench of the Supreme Court and on his part Moily diluted the apex court order in the latest note for the Cabinet Committee on Economic Affairs. Dasgupta said Moily removed a crucial para that was in the earlier version of the CCEA note. The said para mentioned that contractual provisions contrary to the position laid down in the SC order shall be subservient to it.

Moily's claim that he is giving less for gas than suggested under the Rangarajan formula has also been challenged by Dasgupta. He said the CCEA note was changed at the last minute at the behest of Moily to give import parity prices in the last two years of the Rangarajan formula, way above the recommendation of the Rangarajan formula.

Dasgupta said it is not correct to say that PSUs will get the benefit immediately and RIL only from next year. "We know that the benefit of enhanced gas prices that accrue to the PSUs ultimately flow back to the government in the form of increased share in the fuel subsidy sharing mechanism, dividends and profits. Where do the enhanced super profits for the corporates go to?" he asked.