Reddy ‘down’, Reliance scrips up
30 Oct 2012 7:22 AM IST
The buzz around the shifting of S Jaipal Reddy from the petroleum ministry to science and technology at the behest of leading industrial house Reliance Industries refused to die on Monday, a day after the cabinet reshuffle. After Reddy got shifted from petroleum ministry, shares of Reliance Industries rose by 1.53 percent on Monday, with hopes pinned on the new oil minister Veerappa Moily.
What set tongues wagging more was the fact that the Moily went to meet Reddy on Monday reportedly to pacify him. It is well known that the outgoing petroleum minister did not have a comfortable relationship with Reliance Industries, owned by Mukesh Ambani. During his stint as the petroleum minister, Reddy has been criticised for delays in granting approvals to big deals. The purchase of Cairn India by UK-based Vedanta, a 9 billion dollar deal, took months to get approved.
Reddy was also under fire for the six-month delay in approval for a RIL deal with British company BP. The 7.2 billion dollar RIL-BP deal was put up for cabinet approval despite 100 per cent foreign direct investment being allowed in the upstream oil sector. Even after the cabinet’s nod, the formal inclusion of BP in all 21 RIL operated block is pending.
After day-long speculations, finally on Monday evening Reddy broke his silence saying he ‘was excited to be a part of this (new) ministry’. He said: ‘My relationship with my PM is excellent. He has always shown affection and implicit trust in me.’ Reddy asserted that the prime minister took him into confidence about the change in portfolio and ‘that was enough’ for him. Reddy has been shifted to the ministry of science and technology and earth sciences.
Activist-turned-politician Arvind Kejriwal wondered why Reddy was shunted out from the petroleum ministry. He tweeted, ‘Jaipal Reddy is considered to be an honest minister and was removed... Khurshid is charged with corruption and he has been promoted.’
What set tongues wagging more was the fact that the Moily went to meet Reddy on Monday reportedly to pacify him. It is well known that the outgoing petroleum minister did not have a comfortable relationship with Reliance Industries, owned by Mukesh Ambani. During his stint as the petroleum minister, Reddy has been criticised for delays in granting approvals to big deals. The purchase of Cairn India by UK-based Vedanta, a 9 billion dollar deal, took months to get approved.
Reddy was also under fire for the six-month delay in approval for a RIL deal with British company BP. The 7.2 billion dollar RIL-BP deal was put up for cabinet approval despite 100 per cent foreign direct investment being allowed in the upstream oil sector. Even after the cabinet’s nod, the formal inclusion of BP in all 21 RIL operated block is pending.
After day-long speculations, finally on Monday evening Reddy broke his silence saying he ‘was excited to be a part of this (new) ministry’. He said: ‘My relationship with my PM is excellent. He has always shown affection and implicit trust in me.’ Reddy asserted that the prime minister took him into confidence about the change in portfolio and ‘that was enough’ for him. Reddy has been shifted to the ministry of science and technology and earth sciences.
Activist-turned-politician Arvind Kejriwal wondered why Reddy was shunted out from the petroleum ministry. He tweeted, ‘Jaipal Reddy is considered to be an honest minister and was removed... Khurshid is charged with corruption and he has been promoted.’
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