The ADAG group’s JP Chalasani, CEO of Reliance Power, today addressed the media via a conference call. CNBC-TV18’s Siddharth Zarabi analyses RNRL’s information campaign.
Chalasani said that even though Oil Minister Murli Deora has said the burden of fertiliser subsidy could be reduced by over Rs 3,000 crore as a result of that gas flow from the RIL KG-D6 block, this could be over Rs 5,000 crore if it was sold at a lower price and the demand would be increased. He went on to add that the contractor (RIL) was hoarding the gas and not producing at the peak levels it can. This is the second time the company has alleged that RIL was artificially not producing as much gas as it could.
At a time when international gas prices reduced by 75% and crude prices by 50%, RIL’s gas price has gone up by 20%, Chalasani said.
“While the APM price of the gas is USD 2 mmbtu, the selling price of the contractor is USD 4.2 mmbtu — at a premium of more than 100%. This formula is engineered by RIL and had no prior approval of the Oil Ministry,” he said.
This is a daily series of attacks and concerted information that is being put out by the Reliance ADAG group. ADAG has been building up public opinion by coming out with information which has a pattern. On Wednesday, it talked about the cost inflation point where the government’s revenues because of RIL’s higher capex that was permitted are projected to come, ADAG said. Today, it said that at USD 4.2 mmbtu it is a premium of 100%.
The intention is clear: to show that gas can be sold at a lower price and that the contractor, RIL, and the government are colluding to harm national interest, it alleges. In some sense, hearings are happening outside court — in the people’s court and opinion of the people, policymakers will get influenced by this because of this daily deluge of facts.
We are yet to hear in terms of point-by-point rebuttals to the key points and in a way, the Reliance ADAG is scoring. The first attack on the point of the family MoU, it is now clear that the government is filling a revised SLP where the question of asking for the entire family MoU is now being deleted — it is being recognised that it was not required and the government is seeking to restrict itself to the gas supply part of the Ambani family MoU.
At this preliminary stage, there may be responses from the other side and as and when it happens, there will be further information in the public domain.
source:MC
Chalasani said that even though Oil Minister Murli Deora has said the burden of fertiliser subsidy could be reduced by over Rs 3,000 crore as a result of that gas flow from the RIL KG-D6 block, this could be over Rs 5,000 crore if it was sold at a lower price and the demand would be increased. He went on to add that the contractor (RIL) was hoarding the gas and not producing at the peak levels it can. This is the second time the company has alleged that RIL was artificially not producing as much gas as it could.
At a time when international gas prices reduced by 75% and crude prices by 50%, RIL’s gas price has gone up by 20%, Chalasani said.
“While the APM price of the gas is USD 2 mmbtu, the selling price of the contractor is USD 4.2 mmbtu — at a premium of more than 100%. This formula is engineered by RIL and had no prior approval of the Oil Ministry,” he said.
This is a daily series of attacks and concerted information that is being put out by the Reliance ADAG group. ADAG has been building up public opinion by coming out with information which has a pattern. On Wednesday, it talked about the cost inflation point where the government’s revenues because of RIL’s higher capex that was permitted are projected to come, ADAG said. Today, it said that at USD 4.2 mmbtu it is a premium of 100%.
The intention is clear: to show that gas can be sold at a lower price and that the contractor, RIL, and the government are colluding to harm national interest, it alleges. In some sense, hearings are happening outside court — in the people’s court and opinion of the people, policymakers will get influenced by this because of this daily deluge of facts.
We are yet to hear in terms of point-by-point rebuttals to the key points and in a way, the Reliance ADAG is scoring. The first attack on the point of the family MoU, it is now clear that the government is filling a revised SLP where the question of asking for the entire family MoU is now being deleted — it is being recognised that it was not required and the government is seeking to restrict itself to the gas supply part of the Ambani family MoU.
At this preliminary stage, there may be responses from the other side and as and when it happens, there will be further information in the public domain.
source:MC
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