Aam Admi Party supremo Arvind Kejriwal has blamed Mukesh Ambani for knowingly keeping the gas production low to develop the artificial shortage to force government hike the prices. He has also blamed that BJP and Congress are working to provide advantage to Mukesh Ambani and has registered FIR against petroleum minister Virappa Moily and Mukesh Ambani . Let us look out how much true are Arvind Kejriwal‘s allegation or are they same like his various false allegations.
Gas price hiked on Reliance pressure
The price of gas was fixed at 4$ in 2007 for 5 years. That was the time when crude price was at 60$ and now they are at 110$. Gas price hike was due and government setup Rangarajan committee to revise the price and it suggested the price hike to $8 . This price is equivalent to the price in international market. Ragarajan is a strong anti Reliance person. Now the question come why its necessary to pay at market price ? Currently India is exporting gas at the price of $14 which too much higher than the proposed price of 8$ . Our gas blocks requires deep water exploration and our companies are not technologically efficient for it, they need efficient technology which is possible with foreign partnership and they can’t come here when under payed. This is the reason why no company took interest in the last auction of gas blocks done by government of India. It hike is required and there is nothing to blame Mukesh Ambani and reliance for it.
Government Favoring Reliance
Reliance is producing gas only from 10% gas blocks the rest blocks are managed government owned company ONGC. Price hike will improve the balance sheet of government companies more than reliance so Kejriwal’s blame that government is favoring Reliance is not true.
Reliance intentionally kept gas production low
This may be or may not be true. As we said before that gas production from KG Basin requires deep water exploration and our companies lack that technology. Gas production was low even from ONGC. The government has fined reliance Rs 66,000 crore for low gas production. Kejriwal’s blame on petroleum ministry looks absurd.
India exports gas to Banlgadesh at low price
Kejriwal said India provides gas to Bangladesh at the cost of 2.34$ but this is wrong. Bangladesh is not importer but exporter of gas and in fact India is working on setting up Indo- Myanmar- Bangladesh gas pipeline to import gas from there. Bangladesh has also hiked gas price to $7.
I think Keriwal’s blame on Reliance and various leaders are totally rubbish and nothing more than political attention gaining stunt. He is saying that BJP Congress leaders are favoring Reliance, there can be allegations on Kejriwal also that he is favoring foreign companies like Shell who exports gas to India from various countries at price of 14$ . The price hike is necessary and even government companies like ONGC , GSPL has demanded many times the price to be hiked to 7-13$ otherwise it wont be possible for them to maintain and increase gas production.