New Delhi: The Communist Party of India (CPI)
on Wednesday demanded that Prime Minister Manmohan Singh clarify on supply of gas and its price from Reliance Industries-operated
fields and "abnormal tax concessions" given to the company.
CPI also alleged that RIL`s move to transfer Reliance Gas
Transportation Infrastructure Ltd to Mukesh Ambani would
deprive other shareholders of the company to earn a profit.
RGTIL, under Mukesh Ambani, spent Rs 20,000 crore in
laying a 1,400-km gas pipeline from Kakinada to Baruch but CPI
said the company "was transfered to Ambani as a personal
company for a nominal amount, depriving it of profit to RIL
shareholders."
CPI in a statement said there were gaps regarding the
quantum of gas produced from KG basin. "People have the right
to know how much gas is produced from February till now and
whether Reliance has slowed down its exploration to wait for
immediate usage."
RIL had, however, began gas production in April and sales
began only by the end of the month.
The party said the government`s petition in the Supreme
Court states that RIL cannot sell gas below USD 4.2 per mmBtu
price. "This nullifies any scope for NTPC in obtaining gas at
previously agreed rate of USD 2.34 per mmBtu. The (Petroleum)
ministry is thus fighting against a Navaratna PSU."
CPI said by inserting a new section into the Income Tax
Act, which allows 100 per cent capital expenditure incurred on
setting up and operating natural gas or crude oil pipelines,
as 100 per cent deduction in the very first year. "As a
result, it is alleged that Mukesh Ambani gets Rs 20,000
crore."
The party claimed the capital cost of KG-D6 project in
November 2004 was around Rs 5,400 crore. By the 2007-end in
three years, the capital cost has been escalated to Rs 67,000
crore.
"This is entirely recoverable from gas sales ... any cash
share for the government will be paid only after recovery of
all this amount," it said. "There is an allegation that two
junior officers, who are not otherwise authorised, agreed to
the cost escalation putting the nation at a loss of thousands
of crores of rupees."
"CPI demands that the government, its Petroleum Ministry
and other Cabinet ministers should be accountable to the
people of India, not to any corporation however big it is. Hence, the
CPI demands clarification from the government on all the
issues raised by the public and the media," the statement
added.
Bureau Report
