Gas price hike is unjustified and was avoidable; tougher steps needed against RIL

 

From: AAP Media Cell <aapmediacell10@gmail.com> Sat, 18 Oct ’14 9:08p

To: undisclosed-recipients:;

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The decision of the BJP’s central government to finally hike the prices of natural gas from $ 4.2 per unit to $ 5.61 per unit after showing that it carefully deliberated on the issue for five months, is unjustified and it will have a cascading effect on prices in multiple sectors.

Though the Narendra Modi government for now appears not to have endorsed the decision of the previous UPA government to double the gas prices from $ 4.2 to $ 8.4, but a closer look shows that it could be the first in a series of hikes coming soon.

This government’s decision to revise the prices every six months leaves enough room for further hikes in quick succession.

The finance minister has announced that the revised higher price will not be applicable to the KG D6 gas basin, where the Reliance Industries Limited is the contractor, till the outcome of the arbitration proceedings.

Though the BJP government is showing that it is taking tough steps, but the Aam Aadmi Party is of the view that the central government should no longer treat the RIL’s delaying tactics with kid gloves.

There is no doubt that the previous UPA government tried to allow the RIL to make windfall profits and the Election Commission had rightly directed it to defer the decision to double the gas prices till the Lok Sabha election process got over, but the BJP government should have dealt with the erring corporate giant in a strict manner.

The RIL’s violations in its contract with the government for production of gas from the KG D6 basin are extremely serious and it will be a blunder to overlook them.

Having delayed its target repeatedly and deliberately under producing gas is a fraud on the nation and the AAP reiterates its demand that the government should cancel the RIL contract and impose an exemplary penalty on it, in place of allowing it an escape route. (ENDS)

 

Regards,

AAP Media cell

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