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Controversy Over Jaipal Reddy's Transfer From Oil Ministry
The shifting of S Jaipal Reddy from Petroleum Ministry and elevation of Salman Khurshid today kicked up a political storm with parties suspecting the government of coming under corporate pressure and accusing it of promoting those facing corruption charges.

70-year-old Reddy, who was made Petroleum Minister in January 2011, maintained he has no regrets over losing Petroleum but some wry answers he gave at a press conference indicated his apparent sulk.

As BJP and civil society leaders attacked the Prime Minister's decision to take Reddy out of Petroleum Minister, the Andhra Pradesh veteran kept away when his successor M Veerappa Moily took charge of the portfolio this morning.

Reddy himself assumed charge of Science and Technology in the evening before which Moily came to his residence and held consultations with him in an apparent bid to assuage his feelings.

"Many a times it happens (that) you avoid taking decisions. That is not a solution. Avoiding or delaying decision is not a solution. And this is where we need to very seriously work on," Moily said on taking over in remarks interpreted as oblique reference to Reddy's stint.

Decisions, he said, would be taken keeping national interest in mind and not to "benefit one or two individuals or companies." He promised quick decisions and a conducive environment for investment to flow-in.

Reddy, who kept away from journalists the whole of yesterday and most part of today, denied he was unhappy about the shift. He said the Prime Minister took him into confidence about the change in portfolio and "that was enough for me." He, however, gave no reasons for the decision.

"No minister is ever told about the reasons for the change. And I personally feel the Prime Minister need not tell a minister about the reasons for change," Reddy said adding he would stick to norms and forms of a minister.

"In all matters, it has been my effort to be a faithful party man and a truthful minister. My record will always be a faithful party man. That is my focus and that shall be my focus," he said.

He said formation of Cabinet is exclusively privilege of the Prime Minister who has to respond to dynamic situations.

"My relationship with Prime Minister is excellent. He has always shown implicit faith and affection for me," he said.

Asked point blank whether he was happy or unhappy, he said, "I was never happy at getting Petroleum then. Similarly I am not unhappy at losing Petroleum portfolio now."

"All my life I have taken positions on issues. I have taken positions on ideological issues. I have not taken positions on portfolio," he said.

To a question why he was not present when Moily took charge, he said, "I am not an officer to hand over charge. I did not allow (Murli) Deora to handover charge (in January 2011) to me. I did not know Moily would be taking charge. I was told he was coming to see me."

"You are free to indulge in fertile imagination. Without your fertile imagination the world would not be as interesting," he told journalists.

Asked whether pressure from corporates was the reasons for his shift from Petroleum Ministry, Reddy said he was not used to making comments about his previous ministries.

"When I changed to Information and Broadcasting to Urban Development, I have never spoken on I&B. Similarly, when I changed from urban development to Petroleum, I never made comments on earlier portfolios," he said.

To another question whether his honesty was a negative factor, he shot back saying honesty was not his monopoly.

Asked about decisions kept pending my him in Petroleum Ministry, Reddy said the government is the same and "that job will be handed by my successor."

Chiding journalists, Moily said, "What you are reporting is absolutely baseless. Reddy has done a wonderful job and set highest standards of probity in administration."

"Portfolios do change. I have seen three portfolio changes, does it mean I have been downgraded," he asked.

To a question whether activism over Telangana, Reddy said, "UPA government has not taken any position and you should not confuse the two issues."

Sharp comments came against yesterday's Cabinet reshuffle from government's outside supporter Samajwadi Party, which raised questions about the elevation of Khurshid as External Affairs Minister and the continuation of a minister allegedly involved in Coal scam.

"Khurshid has been upgraded in a way and he has been made the External Affairs Minister. If a minister is accused of graft, he should be taken out. A minister who was supposed to be removed, who was directly involved in coal scam, he is still there.

"Good people should have been promoted," senior Samajwadi Party leader Ramgopal Yadav said.

Khurshid, who has denied the allegations of wrongdoing, said he would not like to comment on the issue regarding the NGO run by him and his wife because the matter is in court.

BJP leader M Venkaiah Naidu attacked the decision to move Reddy out of Petroleum saying people and media have said that this was done due to pressure of corporate groups. He demanded an answer from the government.

Reacting to media reports about Reddy, activist Arvind Kejriwal alleged that the UPA government was promoting corrupt people while throwing out honest men.

"Why did Jaipal Reddy lose his job? For resisting Reliance?...So, LPG and power prices set to rise?," he tweeted.

He said Reddy, who is known to be honest has been "kicked out" while Khurshid, against whom there are allegations of bungling of funds for disabled has been "promoted".

"It appears that the government is sending out a message that whoever does more corruption, he will get promotions and if you work honestly, you will not be spared... That's UPA," he alleged.
Emerging story. Watch this space for updates as more details come in
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Digression

11/D-86
Oct 30, 2012
05:49 PM

Jaipal Reddy was transferred after CWG scam and involvement of his Chief Secretary in his PW Ministry.

Immediately after his taking the charge of Ministry of Petroleum the Relince Industry approached him reimbursement for higher in Gas Production costs for Rava -Krishna Godavari Bassien Oil Field .

Jaipal Reddy put down his feet and demanded that rather REIL should increase the Production per the Memorandum entered with the Govt .Reliance started saying that Gas Reserves are not sufficient to yield higher production of the Gas.

The cost of increase demanded would have cost the Public Exchequer to the tune of 6.2 Billion Dollars .

Also the price rise would have resulted in steep rise of sale price to the Public.

''NEW DELHI: Former petroleum minister Jaipal Reddy's ouster was possibly set in motion by a tough note he wrote stating that if demands put forward by Reliance Industries Ltd were accepted, the loss to government would amount to $6.2 billion.

Reddy's note, sent to attorney general Goolam Vahanvati, is believed to have set the cat among the pigeons in government with some viewing the communication as politically explosive. The minister was repeatedly advised to reconsider his view on the matter, sources close to him said.

In his clash with the petrochemical giant, Reddy took the view that RIL was "hoarding" gas by slowing production in its offshore fields in the Krishna-Godavari basin. This, the oil ministry felt, caused a loss of Rs 40,000 crore to companies in the current year while it was Rs 20,000 crore last year. ""

timesofindia.indiatimes.com/india/Did-tough-stance-against-RIL-lead-to-Jaipal-Reddys-exit-from-petroleum-ministry/articleshow/17011502.cms

ASHOK KUMAR GHAI, Mumbai
10/D-62
Oct 30, 2012
01:55 PM

 M.L.GUPTA, NEW DELHI

Thank God there are still people like you who understand that Diru Bhai created real wealth for this nation rather than just creamed off profits from the wind falls through corrupt practices you have described so succinctly. Well said, and it is the ignorant media which is spreading false news by saying that for J.Reddy it is demotion and Sc& Tech is a ministry of low importance. Real hare brained people that these guys are amply  proving the same to the world.

Unfortunately for us,  a crass materialistic society - perhaps bcz of deprivation over ages-, a minister is superior than a Nobel prize winner. A petty commercial tax officer or an RTO is important than a humble medical doctor or a scientist, for the latter  make only honest money and cannot rake in wealth the clandestine way. So health ministry or ministry of Sc& tech hardly become great portfolios to hold when there is little chance for dispensing  favours. Sad indeed for us.

Crassness and crudeness thy name is Indian media.

sandilya
Chennai, India
9/D-29
Oct 30, 2012
09:09 AM

 Reliance Industries saga is only one side of Story. Is Mister Jaipal Reddy a SAINT and a GENIUS? Under Mr Jaipal Reddy's tenure, every, I REPEAT, every one of the Oil and natural gas PSUs under his ministry's control has failed to acheive production targets, have failed to meet the targets set and failed to contribute to increasing India's energy production.

Jaipal Reddy has failed to do anything to improve India's energy security and India's oil import bill has gone many fold up in last few years under Jaipal's Tenure. And this incompetent buffoon that Jaipal reddy is has also ensured that Oil Marketing PSus are suffering from huge losses and helping the destruction of IOC, BPCL and HPCL by stealth.

The solution is not to replace Jaipal with Moily but remove UPA government from power in 2014. But are we going to do that?

Ramki, Delhi
8/D-13
Oct 30, 2012
04:47 AM

Whats surpising here,Jaipals position in Petoleum had become untenable given the fact he sought Audit of Relaince accounts, as undisclosed expenses were made out in its joint venture in KG basin.

Yes we can say that Mukesh has his way,Pl recall his statement that Congress to Aapni Dukaan Hai made by Mukesh to Ranjan Bhattacharaya in Radia Tapes.

BJP cannot afford to stand up it is on pay roll as well.

wrongone, chennai
7/D-96
Oct 29, 2012
11:59 PM

 What a strange country we are? We consider the ministry of petroleum better than Science & Technology!!! God! how intelligent the Indian media is? Is it any better than those politicians or politicians in the making who brand one ministry as upgradation/reward and another downgrading/punishment? Only fools will think the Sc & Tech sector is punishment portfolio. It is this rotten Indian attitude that has lead to uncontrolled corruption allround. It is the same mind set that upbrades businesses publickly but extracts crores of rupees in the name of party fund secrectly shamelessly. Reliance is a continuing saga. So are the names of Tatas and Birlas, Every Tom, Dick & Harry has the liberty to say anything disparaging even without knowing anything about business or government policies or the corporate laws. Does anybody even care to know that Dhiru Bhai Ambani set up his industry when it was not possible to even set up a 50000 spindles cotton mill in India? Does anybody care to know that the man singlehandedly established one of the biggest industries, creating employment for millions and enriching his shareholders enormously. Most of what appears to many as corrupt practices was the result of thinking "big" by a "small" man- Dhiru Bhai Ambani. He won the battle against all odds only because he could think ahead of his times. How many think or have thought like him after him? Dhiru Bhai was no Economist ! He didn't push for FDI in any retail or any other sector. He never sold sick economic theories advocating market forces and their primacy. Our present day leaders can think small as they used to do when Dhiru Bhai started thinking really very big- wangle licences, sell them at a premium, import second hand machinery and put the balance money in foreign banks, import raw material & sell it in black for windfall profits, make black money and bribe everybody who matters, and illegitimately get public land transferred to your ownership. That is all they are capable of doing. Did Dhiru Bhai make money by doing any such immoral dealings? If not, fighting intra-party political feuds in the name of Reliance Industries is useless. Go after Reliance for other reasons than change of ministerial portfolios. How is External Affairs better than Law & Justice? Utter ignorance. External Affairs has been the graveyard of many reputations- remember that great guy Solanki(???) who carried by hand the letter to the Swiss Government in the Bofors case? Those who have stopped the use of pen for blood will hardly make any success of a ministry that lives on a frugal diet of diplomatese and is under intensive and invasive 24x7 watch of the most intelligence agencies of the world (for whom corruption in all its varied forms is a very strong weapon to trap the enemy; it is Bhed Niti). Therefore, it should be celebration time for minister Reddy to handle the ministry of Science & Technology. How many minister can claim intellectual levels of Reddy or his integrity. I happen to have personally interacted once with him on a wide range of issues. If he handles the portfolio and is allowed to really do so, poverty in India can be reduced by at least 5% till the new crop of ministers comes in and import cut by 30 to 35%, as we promote black money generation and locking valuable foreign exchange in foreign bank vaults because we don't allow our science, research and development and technology to grow in the global competitive environment. What is the use of referring to China or America, if this is our attitude to science that we call it a demotion of a minister when the portfolio is allocated to him!

M.L.Gupta, New Delhi
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