In a typical bulldozing style the Hindustan Times, July 4,2011 Business page headlines read "RIL asks govt to expedite approvals for $7.2-bn BP deal". It is not surprising that otherwise we would have expected the Government to ask, while the confidence and manipulative power of a mere company lets it happen the vice-versa. It is interesting to note that there is a huge objection from our Intelligence Agencies on this deal.
Even a guarded report says, " Amidst concerns raised by central intelligence agencies over the $7.2-billion (R32,400-crore) Reliance Industries Ltd (RIL)-BP deal, RIL is pushing for speedy approvals to the deal and has cited BP's entry into India as a “major boost to the energy security of the country.“ Mukesh-Ambani led RIL had signed a deal to sell a 30% stake in 23 oil and gas fields to BP.
RIL's letter dated June 10, asking the petroleum ministry to “expedite approvals“ for its deal with BP, comes within days of a June-1 note of the Ministry of Home Affairs conveying concerns of intelligence agencies.
The agencies had voiced concerns over the handling of a “natural resource“ such as gas by a new player with BP's financial muscle, which would not only take away a large chunk of the gas marketing and transportation business of India's national gas carrier GAIL India Ltd, but will also raise the cost of oil and gas for user industries.
While conveying its “security no-objection certificate“ to the RIL-BP deal, the home ministry has asked the petroleum ministry to “take into account“ these observations while “considering the case.“" ".
Intelligence objections are as follows - * RIL-BP deal could target GAIL and other Public Sector Companies and damage them extensively.*BP is just looking for alternative because Russia stopped flow of gas to Europe, and this will mean Gas from KG basin being taken away from India.* The License to RIL does not allow sale of assets and this is purely illegal.* Any such deal should be entered with Public Sector companies first.
Only a few weeks ago in the observations of the Comptroller and Auditor General (CAG) in its draft report had said that huge losses occurred to the Central exchequer on account of favours extended to private operators like Reliance Industries (RIL) in developing India's biggest gas fieldKG-D6. It wouldn't be surprising if the willing Government for considerations which may be considered extraneous may oblige RIL and over rule the objections of our Intelligence Agencies and put India's security and interests for sale. I am just trying to warn my countrymen.
Jai Hind.
"Unconditional sell off" - India's interest mortgaged again to a British Company, brokers Reliance : LAST LAP Petroleum ministry recommends `unconditional approval', decision likely next week.
ReplyDeleteThe petroleum ministry said on Wednesday that it has recommended the $7.2 billion (R32,400 crore) Reliance-BP deal to the Cabinet Committee on Economic Affairs (CCEA) for an “unconditional approval“.
The deal gives the British energy major a 30% stake in 23 oil and gas fields in India including RIL's gas-producing KG-D6.
Only a few weeks ago in the observations of the Comptroller and Auditor General (CAG) in its draft report had said that huge losses occurred to the Central exchequer on account of favours extended to private operators like Reliance Industries (RIL) in developing India's biggest gas fieldKG-D6.
ReplyDeleteThis deal shall harm India.
Biggest betrayal of the interest of India and Indians, the go ahead to RIL-BP deal by Govt of India today.. A pure sell-off. Condemned.
ReplyDelete'Action against RIL on KG basin D6 block expenditure issue soon'
ReplyDeletePetroleum Secretary, G.C. Chaturvedi on Tuesday said the Petroleum Ministry would initiate action against Mukesh Ambani owned Reliance Industries Limited (RIL) for limiting the amount of expenditure the company has claimed for the KG basin D6 block development which has witnessed a massive fall in output of natural gas.
"We had sought an opinion of the Law Ministry on restricting cost recovery in proportion to the gas output. We have received the opinion. We are considering it and will take a decision in three to four weeks on the action to be taken," Mr. Chaturvedi told reporters here on the sidelines of an energy conference.
RIL has built facilities to handle 80 million cubic metres per day (MCMD) of gas production, but the fields are presently producing around 35 mcmd. In fact, asserting the Government's resolve to initiate action against RIL, Mr. Chaturvedi said the Government will not hesitate to amend the Production Sharing Contract (PSC) if required.