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Both Congress and BJP are in RIL's Pockets: IAC
Reliance Industries Chairman Mukesh Ambani today came under attack from India Against Corruption (IAC) which alleged that the UPA and the previous NDA governments had favoured his company by giving contract on gas exploration in KG Basin and concessions at a huge cost to the exchequer.

Calling it a "classic case of crony capitalism", activists Arvind Kejriwal and Prashant Bhushan alleged that Reliance was "blackmailing" the government to increase the price of gas by "almost stopping" the production and indulging in "hoarding like petty traders".

RIL however refuted the charges saying allegations were at the "behest of vested interests".

"The statements made by IAC... Are devoid of any truth or substance whatsoever and are denied," the company said in a statement.

Government sources said the terms of contracts signed with firms like RIL were already under review and a committee headed by Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan to suggest an alternate model for the future.

The government, they said, was already sensitised about current contracts providing an incentive to firms to keep raising capital expenditure to postpone government getting higher profit take.

Attacking the decision to shift S Jaipal Reddy from Petroleum Ministry, IAC alleged it was now "absolutely crystal clear" that he was eased out of the crucial ministry only on account of "pressure" from Reliance Industries.

They said Reddy was "honest" and his "ouster" was only because he "actively resisted" Reliance' demand for an increase in the price of gas and wanted to penalise the company for "wilful reduction" of production of gas.

He asked why did Prime Minister Manmohan Singh not seek the opinion of the Attorney General when the then Petroleum Minister Manishankar Aiyar "refused to give in" to Reliance' demand for increasing the price of gas from USD 2.34 per unit to USD 4.2 per unit in 2006.

"In 2006, Aiyar was removed and Murli Deora was brought in and he cleared the files within one and half months. Why does he seek the opinion of Attorney General now? Why does his heart beats only for Reliance?" Kejriwal said.

Former Petroleum Minister Mani Shankar Aiyar however denied IAC allegations saying no proposal for raising gas price ever came before him.

New Petroleum Minister M Veerappa Moily refused to react to the allegations.

Kejriwal played clips of conversation between Nira Radia and Atal Bihari Vajpayee's son in law Ranjan Bhattacharya where Bhattacharya was heard telling Radia that Mukesh Ambani said "Congress to ab apni dukaan hai".



The press conference also witnessed some drama when three youths shouted slogans against Kejriwal and tried to throw a shoe at him. The youths were overpowered by IAC supporters and handed over to police.

Just before this, another man raised questions about his wife, an IRS Officer, not getting a transfer out of Delhi for the past 20 years.

As there was commotion, Kejriwal asked his supporters to allow him to raise the question but media persons surrounded him, saying non-journalists were not allowed to raise questions.

Meanwhile, Reliance Industries has denied Kejriwal's charges, saying that allegations are made at the behest of vested interests.


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Digression

29/D-99
Nov 03, 2012
02:41 PM

>>It was purportedly done in early 1990s under P.V.N Rao gevernment when we did not have enough forex to pay our bills and IMF wouldn't lend us any more money unless we opened our economy.

As usual, you are unable to stick to the topic. We are discussing the P&NG sector and you are giving me general economic history! Go do some reading up on NELP before peddling irrelevant gyan here.

>> Thats when blocks were given out on international competitive bidding. That is how Cairn got the Rajasthan oil block.
>>The space for corner tea stall is not given out on a competitive bidding in India let alone most valuable state assets. You will need to find someone more gullible to sell this to.

So for clueless geniuses, a corner tea stall auction acts as evidence for government policy of auction in Oil & Gas, Power, Telecom and disinvestment.

http://www.rediff.com/business/report/did-not-award-kg-d6-block-to-ril-govt/20121101.htm

“The government had in 1999 bid out KG-D6 and 23 other blocks through an international open tender under the New Exploration Licensing Policy that was formulated after four years of intense public consultations and using the best practices from the world over, a Petroleum Ministry official said.”

http://articles.economictimes.indiatimes.com/2012-11-01/news/34857502_1_kg-d6-gas-block-gas-price-revision

“RIL offered better commercial and technical terms than public sector ONGC-GAIL combine and Cairn Energy to win the KG-D6 block and signed Production Sharing Contract (PSC) in April 2000 on terms that were similar of the other block winners that included Gazprom of Russia, ONGC and Cairn, the official added.”

But how do you convince people who are looking at tea stalls for evidence of government policy?

>>Ambani was able to increase his gas prices arbitrarily (having ministers changed) holding the government hostage under both regimes.

The price change happened in 2006. Pop quiz: Who was in power then?? This should be easy given that you are so well versed with what happened even in the 1990s.

>>that is just a fact, you can build your own theory from it.

That’s an opinion not a fact and till now you have given no proof that you know the difference.

>>how one must get international giants to solve the problem of Ambani's controlling both the UPA and NDA!
>>I am yet to see a foreign competitor enter Ambani's home turf (Oil, Gas, Textiles, Communications) yet.

We are talking Oil and Gas geddit?? What business is Cairn in, selling toothpaste? And in communications, what are Telenor, Etisalat, Marwari lala companies?

>>Apparently the irrefutable evidence of NDA involvement provided by Kejriwal is Radia tapes conversion with Ranjan Bhattacharya!
>>Either "Congress to ab apni dukaan hai" is apparently a codeword for ethical business practices these days or the audio tapes could have been forged and Radia could be a CIA agent from the alternative universe. There are many possibilities but some are more plausible than others.

This must be considered an impressive speech in your intellectual circle but where do you see an NDA involvement here??
 

RSM, Delhi
28/D-101
Nov 02, 2012
04:01 PM

 #27

Let me try again, this time line by line:

>>The reforms to being external giants to India's door happened in 2000 itself.

It was purportedly done in early 1990s under P.V.N Rao gevernment when we did not have enough forex to pay our bills and IMF wouldn't lend us any more money unless we opened our economy.

>> Thats when blocks were given out on international competitive bidding. That is how Cairn got the Rajasthan oil block.

The space for corner tea stall is not given out on a competitive bidding in India let alone most valuable state assets. You will need to find someone more gullible to sell this to. 

>>Yet we are having clueless votaries of 'RIL controlling NDA and UPA' theory

Ambani was able to increase his gas prices arbitrarily (having ministers changed) holding the government hostage under both regimes. that is just a fact, you can build your own theory from it.

>>how one must get international giants to solve the problem of Ambani's controlling both the UPA and NDA!

I am yet to see a foreign competitor enter Ambani's home turf (Oil, Gas, Textiles, Communications) yet.

>>Apparently the irrefutable evidence of NDA involvement provided by Kejriwal is Radia tapes conversion with Ranjan Bhattacharya!

Either "Congress to ab apni dukaan hai" is apparently a codeword for ethical business practices these days or the audio tapes could have been forged and Radia could be a CIA agent from the alternative universe. There are many possibilities but some are more plausible than others.

hitesh brahmbhatt, san diego
27/D-86
Nov 02, 2012
02:35 PM

>>Thats when blocks were given out on international competitive bidding.
>>Wow, then India must be at the top of the Transparency International's list.

What can you except from the logically challenged? You claimed that Reliance would fight tooth and nail to prevent reforms which can bring in external giants and I showed you that you were factually wrong. You find it hard to accept such a simple point so you conveniently jump to an irrelevant Transparency International's list?

RSM, Delhi
26/D-61
Nov 02, 2012
11:42 AM

 #24

>>Thats when blocks were given out on international competitive bidding.

Wow, then India must be at the top of the Transparency International's list.

http://www.bbc.co.uk/news/world-asia-india-15979646

No such luck :(

Oh well, we got lot more stuff to sell, I am sure one of these days we will do such an honest deal that will just catapult us to the top of the list!

hitesh brahmbhatt, san diego
25/D-81
Nov 01, 2012
03:41 PM

Sorry, should be read as "The reforms to bring"

RSM, Delhi
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