Lok Satta

Thursday, 13 September 2007 00:00

REJECT RELIANCE GAS PRICE: Dr. J.P.

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Lok Satta Party’s National Coordinator Dr. Jayaprakash Narayan (Dr. JP) today appealed to the Prime Minister to reject the price fixed by the Empowered Group of Ministers (EgoM) for Reliance natural gas from the Krishna-Godavari basin.

 

(The EGoM had fixed the price at $4.20 per million British thermal units (mBtu) against $4.33 proposed by Reliance Industries). Addressing a media meet, Dr. JP said industry and agriculture would suffer a setback and lose their competitive edge in international markets if the natural gas was priced unmindful of national interests.

 

Dr. JP said that former Central Electricity Authority Chairman S. L. Rao had suggested that power and fertilizer sectors should be supplied gas at less than market rates in the interests of Indian industry and agriculture. A higher gas price would have a cascading effect on the economy.

 

The argument that the agreement with Reliance was sacrosanct would not hold water since there had been the precedent of the Government modifying licensing terms for mobile telecom operators when they faced survival problems. If the Government could change the terms to favor industry, there was no reason why it could not repeal the agreement with Reliance in national interest, said Dr. JP.