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

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