UPA, NDA govts gave undue favours to Reliance: Kejriwal

Mangalore Today News/ ITV

New Delhi, Oct 31: The third expose by India Against Corruption today targetted the country’s major corporate group Reliance with Arvind Kejriwal alleging that the UPA government buckled under the corporate’s pressure by raising the price of Krishna-Godavari gas prices.

Addressing a press conference, Kejriwal, flanked by Prashant Bhushan and Manish Sisodia, alleged that at least two ministers - Mani Shankar Aiyar and S Jaipal Reddy - were shunted out of Petroleum ministry for not acceding to Reliance demand for raising the price of KG price.

 

Kejriwal also alleged that the then petroleum minister  Murli Deora raised the KG price causing Rs 1 lakh crore loss to the government, while an empowered group of ministers led by Pranab Mukherjee again raised the KG price causing Rs 10,000 cr loss to the exchequer.

“It seems this government is acting as an agent of Reliance, and the government is being run by the corporates”, said Kejriwal.

Detailing his charges, Kejriwal said, it was during the NDA regime that Reliance was given the KG basin contract in 2000. At that time, Reliance had claimed that India would become self-reliant in gas by 2010, and the company promised to provide gas at the rat of 2.25 dollars per unit for the next 17 years, he said.

In 2004, when the UPA government came to power, Kejriwal said, reliance demanded a hike in gas price to  4.25 dollar per unit. An empowered group of ministers headed by Pranab Mukherjee  approved the rate causing profit to Reliance, Kejriwal alleged.

It was during this time when Mani Shankar Aiyar, the then petroleum minister, opposed the move, he was shunted out, Kejriwal alleged.

In 2010, Reliance upped the ante and wanted 14.25 dollars per unit for KG gas. This was opposed by S. Jaipal Reddy, the petroleum ministry, and he had to leave the ministry, Kejriwal said.

“We now want to see what the new petroleum minister Veerappa Moily will do. If the KG gas price is raised to 14.25 dollars, electricity price will rise from Rs 3 per unit to Rs 7 per unit. Are the people ready to bear this?”, asked Kejriwal.

The IAC activist said, Reliance has deliberately reduced gas production from Kg, and has sold 30 per cent to BP for Rs 35,000 crore.

He demanded a performance audit of KG basin by the CAG and the cancellation of the contract with Reliance.

At the starting of press conference, two audio clips from Niira Radia tapes were played out, in which Radia was heard speaking to Ranjan Bhattacharya, Atal Bihari Vajpayee’s son-in-law. In the conversations, Bhattacharya was bragging about his close connections with Congress leaders.

“Congress and BJP are in cahoots with corporates to loot this country”, Kejriwal alleged.