Rajya Sabha MP Tapan Sen wants the “nexus” between the Manmohan Singh government and Reliance Industries Ltd. investigated.
The dust has not even settled on the 2G spectrum scam and the Manmohan Singh government has been hit by another storm: the report of the Comptroller and Auditor General (CAG) on irregularities committed in the offshore KG Basin D-6 block to favour the Mukesh Ambani-owned Reliance Industries Limited. Parliamentarian Tapan Sen — a Rajya Sabha member from the Communist Party of India (Marxist) — has been demanding a probe into the KG project for the past six years. The final CAG report has corroborated many of the issues Mr. Sen had raised with the Petroleum Ministry as well as with the Prime Minister and his office. A member of Parliament's Standing Committee on Petroleum and Natural Gas, he spoke to Sujay Mehdudia on the alleged regularities, the indifferent attitude of the Prime Minister and PMO, and the nexus between RIL and the UPA government in gas exploration in the KG Basin. Excerpts from the interview:
With the CAG's final report out, should the government launch a full-fledged investigation into the KG basin operations of RIL?
An investigation should have been ordered long back. The CAG has only confirmed the issues raised by me during the past six years. The UPA government has been in denial mode on corruption in the KG Basin D-6 block. It is dragging its feet and does not want to take on a private contractor who has indulged in unjust drainage of the national exchequer. Right from the issue of gold plating to raising the gas price irrationally and abnormally, everything has been done to satisfy the private contractor. Now the circle is complete. Gold-plating was done to get a bigger profit in whichever manner possible. Allowing gold-plating at the beginning and then hiking the gas price to almost what had been demanded by the private contractor indicated a nexus at the highest level. Despite repeated pleas, the government has been indifferent to the issue. I have read in the media that the CBI is looking into the issue but till something concrete happens or it emerges from the CBI that they have launched investigations into the matter, I would not like to believe reports that a probe is actually happening.
What is the most important aspect of this issue that needs to be probed?
The matter is linked to energy, which is very important and a lifeline for the people and the country. The whole issue relates to fuel, and national interest was not taken on priority. This issue has brought out the holes in the system and questions the integrity of the whole system of governance. The irregularities in KG Basin D-6 block need to be probed on top priority.
What was being done was so visible right from day-one. It all began with the submission of the field development plan (FDP) by RIL. The initial FDP was for production of 40 mmscmd [million metric standard cubic metres per day] of gas at a cost of $2.47 billion. Subsequently, the FDP was amended and the production target was raised to 80 mmscmd but the FDP went up four times to a whopping $8.84 billion. The whole FDP was approved by the Director-General of Hydrocarbons, V.K. Sibal, who is facing CBI investigations now, in 33 days flat. How could such a big cost escalation be approved in just 33 days, that too when doubts had been raised inside and outside Parliament?
Do you think that the $4.2-per-mmBtU price fixed by the Empowered Group of Ministers in 2007 was unjustified keeping in mind that international gas prices had been declining?
Unfortunately, the whole governance is captivated by the corporates today. The government went ahead and approved the gas price almost in toto — to what was suggested by RIL. A slight difference was made to say that they had not accepted what RIL suggested. There was another impropriety done. RIL, which quoted $4.3 per mmBtu to the EGoM, quoted $2.34 per mmBtu in the international competitive bidding tender of NTPC. They would not have quoted $2.34 per mmBtu without keeping a profit margin. The same RIL is on record in the Supreme Court on an affidavit that their basic cost of exploring gas is much less than $2 per mmBtu. The Committee of Secretaries had opposed the gas price being fixed at $4.2 per mmBtu. The Power and Fertilizer Minister had opposed that price. All this was given in writing to the EGoM headed by Pranab Mukherjee, that NTPC would be losing Rs.24,000 crore on two projects — Gandhar and Kawas — if the $4.2 price was accepted instead of the tender price of $2.34. But the EGoM went ahead and approved a higher price shamelessly. I think the gold-plating issue needs to be probed thoroughly, but also the issue of gas price fixing. The truth should be brought out before the people who have been burdened and made to shell out more to benefit a private contractor. At that point of time, too, I had asked the government to explain on what basis RIL fixed the price of $4.3. The EGoM, just to posture and fool the people, agreed to $4.2.
How do you see the role of the Prime Minister and the PMO in this whole matter?
Without being too uncharitable, I can say the role of the PMO and the Prime Minister has been indulgent. It is not something post facto as the Prime Minister has been claiming in various cases. The issue was pointed out by me way back in 2006. The matter was raised in Parliament. Every fact was put in the public domain, in writing, but no action was taken for some strange reason. The CAG and its report came on the scene much later. I cannot but point the finger at the Prime Minister in this whole affair, and not single out the Petroleum Ministry as they do not have the power to do such a big thing. Like A. Raja cannot be singled out in the 2G scam, one man cannot be singled out. Others cannot just wash their hands off in the present system of governance. In 2007, I wrote to the Prime Minister pointing out the irregularities. I wrote that I am not satisfied with the Petroleum Ministry's presentation made to me. I wrote four or five times. Only once was it acknowledged.
What do you make of the sudden fall in production of gas from the KG Basin D-6 block?
The latest development of a stake-sale to BP has added colour to the whole scandal. For 80 mmscmd, they had estimated their cost of production at $8.84 billion. And now they have sold 30 per cent of that at $7.2 billion. So they have already realised their cost! But the government will only be able to get its share after 10 years. The government was also hasty in giving clearance to the RIL-BP deal. I wrote to the government that in view of the controversy that had come up, the government should review the clearance. There is a deliberate design to ensure that there should not be any hurdle in the way of the contractor. Now there is a drastic fall in production, and even the Petroleum Ministry has gone on record saying that RIL has not dug the total number of oil wells that was committed to by it under the FDP. The production has fallen for this reason. Although they are committed to 80 mmscmd, production today is hovering around 40 mmscmd. It is a clear game. Now they have already started lobbying for increasing the gas price to $5.2 or $5.3 per mmBtu. This is nothing but pure pressure tactics — by not ramping up production and then seeking an increase in gas price.
Keywords: RIL, KG Basin D-6 block, Petroleum Ministry, Mukesh Ambani
Any revolt against people like Ambanis can not and will not work in India. We are the greatest democracy in the world and we have our elected representatives ruling the country, and they have been chosen by the majority. Any number of them can be bought by money. From history it will be seen that lack of integrity is our national charecter, and greed is the root cause.
My conscience has never accepted Reliance as a corporate entity. It can at best be described as oppurtunist and introducer of corrupt practices in corporate world. They, in my mind, only deserve strictest capital punishment to serve as deterence to others
Honorable Prime Minister will again be haunted by the ghost of 'Hamlet' but unlike Hamlet he does not have the conscience to ruminate on the moral issues and therefore as he raised his hand in '2G spectrum' case we will be seeing something like that only.The 'stupid common man' does not have the right to question conglomerates like Reliance as it has been clearly stated by our law minister that people who run the business are there to make profit only and they cannot be incarcerated otherwise that will lead to dearth of such intelligent people.
India is run by the largest and most corrupt Corporate entity - The Congress. As mentioned in a comment above ,by the time India wakes up to this plunder of national resources , the country would have bled to near-death. India can be redeemed only if there is a change of Govt. within a year ;this Congress Party decimated in Polls and the citizens consciously elect only those with a clean background . The Youth of India must wake up & play an active role in this regard, to educate and mobilise the electorate , to save our Nation from the impending ruin.
Aberration, is excused, but when you see a scandal of such a mammoth scale every alternate day, what will you infer out of them. The present government has unlimited crime against the people of this nation under its sleeve. It's high time the government be ousted, as it has no plans to relinquish its position on its own. For they might not have committed the crimes in succession one after other. Loot at higher places has never been that much prevalent in our corrupt India until the UPA government came in power. At least, before this government people had some hope left in the PMO and like such. What we have seen over a couple of years the PMO has been an involved party whether the commonwealth game, 2G fiasco the KG Gas excavation distribution, etc.
We the people of India have grown a tendency over the years to wait for a new 'breaking scandal-news every alternate fortnight'. One investigation is yet to complete the next take drivers seat and the previous is forgotten. continue bravo.
Sooner or later the loot by Reliance family had to come in public.
Father ruled governments for years together by molding the government policies to suit them, now his sons are continuing the legacy of their father. It was amazing that the country like India watched the fight between brothers over the resources owned by none of them. The government is hand in hand to the loot.If these corporates and this sick government continues we will surely have our country either sold to MNCs or to foreign corporates.
I really do not see great future even, as the options that we have ( BJP, Left or JDs) are also not capable to lead this complex democracy called India. BJP comes with great divisive and virulent mentality. If they come we will have South African apartheid back to be seen in India. What about Left, sorry they are broken and powerless and their history in India is just about strikes and unions (west bengal. Janta dals, again is divided in so much pieces that, assembling will be messy
Now eveybody knows how the Ambani's became the world's richest, we would be fools to consider them as world's richest business men. Let us write to Forbes, Fortune 500 etc., to exclude these rotten men from their list of most successful entreprenuers.
If you wish to understand more about the Congress- RIL relationship and the potential hidden equations in the emerging KG basin gas scam , I urge you to read the book "Ambani and sons " by Hamish Mcdonald , published a few months ago in India .The book has interesting anecdotes on some of the biggest political scandals of the time - mainly pertaining to RIL and is reflective of the way business is done in India(under the Congress).It wil also give you an insight into not only how closely Murali Deora , UNDER WHOM THIS KG BASIN DEAL WAS SIGNED BY THE PETROLEUM MINISTRY, is related to RIL but also why and how the various scams like 2G; CWG and even the sinking of AIRINDIA take place under this same Congress .We must remember that this party has ruled this country for 60 of the 65 years and if the RIL in just 35 years has become ‘ too big to antagonize’, you can understand why every scam has the Congress stamp of approval on it .
It is not for nothing that Communist ideologies have failed all over the world in the past-and in case of China-have been modified suitably to suit their population at large.All those fanatics who are commenting against this deal in particular,must realise that Industrialists/ Corporates/ Companies/Businessmen/ Taxpayers liabilities (i.e.payment of taxes/duties/cesses etc)are decided by the Govt.As far as the INTENTIONS of the Govt in deciding payments to the Govt are concerned,please start by questioning the Ministers concerned.If you think that you will achieve anything by questioning EVERYBODY WHO WAS AROUND WHEN DECISIONS WERE TAKEN,you will come to grief.Also,please remember that if the questioned decisions conformed to the then existing policies of the Govt,then it is improper to sit in judjement.India is a welfare state and a democracy which is run as per the contents of a Constitution.
YSR has raised this issue long before....which i guess was the reason for his controversial demise...I request THE HINDU to purse this issue to the core....The loss in 2G is debatable but this is crystal clear...The Ambanis(CAPITALIST IDEOLOGY) should realize that STATE is not their DUKAN.
This implies that whole government is working to benefit the corporates and some ministers.They are looting the national resources to add up to their wealth, for which the public will pay.We will have to pay unjustified price just because RIL and Mukesh Ambani wants that.Our so called leaders are selling the nation to these Black English. They will have to answer that in next elections.
Thanks a lot the Hindu team for publishing such interviews. Otherwise, in today's world where even news are getting sponsored by business houses the truth always remains hidden. I think everyone in the country know the contribution of various governments and especially the congress governments in the growth story of Reliance. Right from Indira Gandhi's day till the current Manmohan Singh's regime. Has government the courgae to impose a penalty on Reliance for failing to produce 80 mmsccd and claiming the expenditure.....Needless to say the government has become a puppet of Business houses .
Everybody knows Pranab and Deora uncle were close to Dhirubhai Ambani. No wonder Pranab went out of his way to clear RIL's proposal. As far as Murli Deora is concerned, the less said, the better. Both Pranab and Deora should be thoroughly investigated.
Clearly, what is happening blatantly is frightening and represents a shameless example of corporate corruption.It is quite difficult to understand rationally that when facts are clear,why these Corporate-government agreements go on? When rampant corruption is evidence from the first place and Govt. Official provide full-fledged support to private vested interest under the curtains, we as hapless citizens cannot do anything. This situation clearly represents the powerlessness of democratic institutions where citizens right(in terms of countries resources) are deprived and are served to shameless capitalism.
I say , jail both these Ambani(ya) bandhus. They, like their father, have looted the Indian state of billions. They have basically converted Indian public money into private property. The fact that they have both gotten away for so long has created an impression in the minds of the young generation that in this Country, being "smart" means being able to subvert the system in new innovative ways. This is a dangerous mindset which has given rise to the likes of A. Raja, Lalit Modi and others .... all relatively young people who grew up when Dhirubhai Ambani was running amok and was regarded as some sort of "hero" by the average man for taking on the "System".But the Country has changed and is still changing further. It is necessary to make examples out of these two "Oligarchs" to teach the average man "What goes around, comes around" Besides Reliance does not need Ambanis to be functional. Remember L&T model.... its working , so must be the case with Reliance group.
I think more than anyone its the PM who is most responsible for all this mess and 2G and CWG and Telangana and more. A person in a public role has to talk about overall integrity - personal and professional. Mere personal integrity as his managers have spread the word is of little use and in fact will not stand scruitiny when is he stonewalling all efforts to expose the corrupt. To me, he is the most thick skinned politician, ever!
All roads seem to lead to the PM's doorstep.
Since begining there has been doubt that Reliance is arm twisting for price increase and the whole story of falling production is a hoax. This is an example how a private player is being allowed to squat and the whole country is being held at ransom to satiate the greed of an individual. Allowing private developer to squat on assets of national importance without an regulation will cause untold misery to common people. Immediate steps should be taken to rectify the situation.
The loot continues.Do you think it will stop with the coming of the BJP? No.There are more corrupt and incompetent leaders in the party.So what do the common man do?Do what happened in the middle east.
Sir, A very big fraud is carried out meticulously on RIL-Govt-Gas pricing. I have written many comments on ET, on this issue, when the brothers were playing a drama on this. RIL was allowed a price far in excess of what it agreed to NTPC , ignoring the national interest. They have now almost fully recovered the cost by selling 30% of the project -benefit to the entire cost it may spend on. The episode is in no way different from 2-g scam, wherein the precious spectrum was sold away at dirt-cheap prices, & later sold at huge benefit by the beneficiaries. A notorious family has accumulated wealth in just 10 years, far in excess of the combined wealth of Middle-east Sheiks , Mubarack, Ali, Assad , Gadhafi. By the time India wakes up to this loot, the Economy would have bled to near-death. India can be redeemed only if there is a change of Govt. within a year, & Congress Party decimated in Polls. Will the Youth of India wake up & save our Nation from the ruin ?
This is a serious matter with deeper ramifications. The present Govt. cannot afford to antagonise the Amabnis, as the ruling party will be a big Zero without their backing, and will collapse like a pack of cards as has happened to Ediyurappa's BJP in Karnataka, when action was initiated against the Reddis. We have to wait and see what tactics the Congress regime will adopt to white wash the CAG report.
Corporate corruption like corporate greed in the US is eating the vitals of goverment when scores go without a proper meal here is a tycoon who from the 28th floor watches the multitude of slums without remorse. an uprising like arab spring is needed to correct the sham democracy.THE natural wealth of this country be it iron ore or gas is for the benefit of a few
Such allegations notwithstanding, the media and a large section of the people still hesitate to blame the Prime Minister for anything. Astrolgers might say that it is because of the planetary positions in his horoscope. May be, but where does it leave the people of this country?
The governments past and present have had a cosy relationship with this family who are draining the natural resources for increasing their personal wealth. Till few months ago these brothers were at each others throat for who will benefit more from the natural resources of India which has been given away to them by greedy politicians for few crumbs thrown at them. All these natural resources are the property of the nation and not the personal wealth of some of these super rich jokers . The same thing applies to the mining industry. This nation is suffering from plunder from Ghazanavi's time. If as citizens we do not sit up and take note and stop the plundering we are doomed. Because India will need all these natural resources for we are still a developing nation.
This Government run by Congress will empty the treasury if allowed to rule till 2014 .
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