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LATEST NEWS UPDATES | KG-D6 decisions taken ‘without fear or favour’

KG-D6 decisions taken ‘without fear or favour’

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published Published on Nov 2, 2012   modified Modified on Nov 2, 2012
-The Indian Express

Petroleum Minister Veerappa Moily on Thursday refuted Arvind Kejriwal’s accusations of the UPA government favouring Reliance Industries Ltd saying that the decisions were taken objectively “without fear or favour” and assured that his ministry would continue to uphold transparency.

“The ministry is committed to upholding the rule of law and decisions are taken objectively without any fear or favour. The system is not influenced or guided by whims and fancies of any individual or group of individuals. The ministry will continue to function and take decisions with firmness, after due diligence and strict adherence to principles of transparency and probity,” said a statement from Moily’s office.

The point-by-point rebuttal to what Moily calls “baseless and frivolous” allegations levelled by India Against Corruption, the minister sided with his Prime Minister Manmohan Singh whose governments have been “consistently protecting the national interest”.

On accusation of S Jaipal Reddy being shifted out of the ministry to facilitate RIL getting a higher price for natural gas, it said a revision of gas price before 2014 was rejected in 2010 and that “there was no question of revising price before the expiry of the five-year tenure on March 31, 2014”.

On hike in capital expenditure at KG-D6 block, it said the ministry’s stand has been consistently to “protect the government’s revenue by proper and regular monitoring of the expenditure and production”. RIL’s revised Field Development Plan submitted last September for a capex of $6.2 billion to produce 3.4 trillion cubic feet of gas “was being examined critically by Directorate General of Hydrocarbons”.

On fall in output from 67 million standard cubic meters per day peak in 2009-10 to current 20.5 MSCMD instead of achieving the targeted 81 MSCMD, it said RIL has been punished by disallowing “proportionate cost recovery”.

On allegations of government favouring RIL in award of KG-DWN-98/3 or KG-D6 block, where subsequently 18 gas and one oil find was made, Moily said it was awarded under the New Exploration Licensing Policy in 1997 and implemented by the BJP-led NDA government in 1999.

On allegations regarding favourable contractual arrangements in PSC, it said they were modelled in line with those prevalent in other developing countries for NELP blocks and was a “generic template and not specific” to the KG-D6.

On media reports of Moily postponing the entry conference called by CAG, it said the meeting was called off due to certain administrative inconvenience on October 26 well before the Cabinet reshuffle.

On audit of the block, it said the CAG was entrusted the job in 2007 when Murli Deora was oil minister. The CAG report was under examination by the Public Account Committee. In May 2012, the ministry decided that CAG would undertake audit of KG-D6 for years 2008-12. “RIL has raised certain apprehensions regarding this audit and expressed their desire to discuss the issue further. The issues are likely to be finalised in the next few weeks,” it said.

The Indian Express, 2 November, 2012, http://www.indianexpress.com/news/kgd6-decisions-taken--without-fear-or-favour-/1025410/


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