Arvind Kejriwal-led India Against Corruption’s fresh target is Reliance Industries Ltd and its Chairman Mukesh Ambani.
Addressing a crowded press conference here on Wednesday, Kejriwal and his colleague, Prashant Bhushan, alleged that RIL was blackmailing the Union Government for increasing the price of gas from the KG Basin.
The IAC activists said the KG Basin contract of the RIL should be cancelled immediately. Urging the Government not to fall prey to the “blackmailing strategies” of RIL to increase gas prices, they said the Government should put in place adequate systems to get full production from KG Basin at cheapest prices.
They said both the BJP and the Congress have helped the RIL to make profit from the KG Basin contract. “The basic tenets of the contract, signed under the NDA Government, itself were faulty. The contract has done damage to the country,” Bhushan said.
The activists said Jaipal Reddy was removed from the Oil Ministry for preparing a note that acceptance of RIL’s demand would mean an additional profit of Rs 43,000 crore to the company in just two years.
“Most of this gas is used in fertiliser and power production. Increasing gas price would mean an additional financial burden of Rs 53,000 crore on Central and State Governments. This would in turn mean higher electricity and fertiliser prices in the country or a higher subsidy burden,” they said, and added that the Prime Minister’s “heart beats for Reliance not for the common man.”
They alleged that in order to pressurise the Government, RIL substantially reduced its production of natural gas.
“Production has been artificially kept low to blackmail the Government. They are not just hoarding gas, but also forcing various consumers to buy gas from abroad,” Kejriwal said.
BJP seeks PM’s response
Reiterating its demand that the Prime Minister should explain why Reddy was removed from the Oil Ministry, the BJP said corporate interests were taking precedence over national good.
Hitting out at RIL, party leader and former Finance Minister Jaswant Singh said RIL was resisting comprehensive audit by the CAG.
“Is the Government now going to dilute the earlier stand that CAG audit is not required?” he asked.
“RIL wanted to increase the price per mmbtu by $10. Would this result in virtually a three-fold increase in profits to the company (some say Rs 65,000 crore or so,) and thus corresponding loss to the country. Is it this that has resulted in the Minister being shifted?” Singh said in a statement.