Reliance selects petroleum minister in India: Kejriwal
1 Nov 2012 6:35 AM IST
The India Against Corruption (IAC) leaders Arvind Kejriwal and Prashant Bhushan took on the powerful industrialist Mukesh Ambani on Wednesday, when they charged the erstwhile National Democratic Alliance (NDA) and the ruling United Progressive Alliance governments of being ‘in the pocket’ of Reliance Industries Limited (RIL). They charged that in the cabinet reshuffle, Jaipal Reddy was shifted out of the petroleum ministry at the behest of ‘corporate mafia’, pointing towards the corporate pressure, in particular RIL.
The IAC leaders claimed that Reddy was shifted out as he refused to oblige RIL in its demand for hike in gas prices, which would have cost the central and state governments collectively about Rs 53,000 crore if accepted. They demanded that the licence to RIL to explore the Krishna Godavari (KG) basin of the Andhra Pradesh coast be cancelled. Using strong language against Ambani, Kejriwal said, ‘Mukesh Ambani is running the country, it seems. ... Jaipal Reddy was removed as he refused to hike the charges being levied by Reliance Industries to supply gas to NTPC.’
The IAC leaders also played out to portions of tapes of the corporate lobbyist Niira Radia’s conversations with the former prime minister Atal Bihari Vajpayee’s son-in-law Ranjan Bhattacharya. They claimed that the conversation made it clear that Ambani had influence over both the Congress and the Bharatiya Janata Party. ‘In the Niira Radia tapes, Ranjan Bhattacharya is heard telling Niira that Mukesh Ambani told him “Congress to ab apni dukaan hai”.’
According to Kejriwal, the contract for KG basin was awarded to RIL in 2000 by the NDA government when the corporate agreed to supply gas to the National Thermal Power Corporation for the next 17 years at $2.5 per unit. But, Kejriwal said, the company revised the rate to $4.25 per unit in 2007, which the then finance minister Pranab Mukherjee agreed to as the head of an empowered group of ministers. Later, he said, the company wanted the rate to be further hiked to $14.25 a unit.
RIL, in a statement, said, ‘Irresponsible allegations made by IAC at the behest of vested interests without basic understanding of the complexities of a project of this nature do not merit a response.’
The IAC leaders claimed that Reddy was shifted out as he refused to oblige RIL in its demand for hike in gas prices, which would have cost the central and state governments collectively about Rs 53,000 crore if accepted. They demanded that the licence to RIL to explore the Krishna Godavari (KG) basin of the Andhra Pradesh coast be cancelled. Using strong language against Ambani, Kejriwal said, ‘Mukesh Ambani is running the country, it seems. ... Jaipal Reddy was removed as he refused to hike the charges being levied by Reliance Industries to supply gas to NTPC.’
The IAC leaders also played out to portions of tapes of the corporate lobbyist Niira Radia’s conversations with the former prime minister Atal Bihari Vajpayee’s son-in-law Ranjan Bhattacharya. They claimed that the conversation made it clear that Ambani had influence over both the Congress and the Bharatiya Janata Party. ‘In the Niira Radia tapes, Ranjan Bhattacharya is heard telling Niira that Mukesh Ambani told him “Congress to ab apni dukaan hai”.’
According to Kejriwal, the contract for KG basin was awarded to RIL in 2000 by the NDA government when the corporate agreed to supply gas to the National Thermal Power Corporation for the next 17 years at $2.5 per unit. But, Kejriwal said, the company revised the rate to $4.25 per unit in 2007, which the then finance minister Pranab Mukherjee agreed to as the head of an empowered group of ministers. Later, he said, the company wanted the rate to be further hiked to $14.25 a unit.
RIL, in a statement, said, ‘Irresponsible allegations made by IAC at the behest of vested interests without basic understanding of the complexities of a project of this nature do not merit a response.’
Next Story
