CPI(M) joins gas pricing row, asks Govt to reject RIL proposal

The CPI (M) on Tuesday urged the Government not to allow an “unfair price for the gas produced from the Krishna Godavari basin” as demanded by Reliance Industries Limited.

The CPI (M) on Tuesday urged the Government not to allow an “unfair price for the gas produced from the Krishna Godavari basin” as demanded by Reliance Industries Limited.

“Reliance Industries has proposed $4.33 per MMBTU which is designed to ensure windfall profits for the private contractor for exploiting natural resources of the country,” the party Politburo said.

The party asked the Government to decide on a price based on “actual production costs plus reasonable profit” and sought the intervention of the Empowered Group of Ministers on the issue.

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The party said the present price formulation made by RIL in 2007 was in “no way consistent with the price of $2.34 quoted by the same RIL in 2004 for supplying gas from the same KG Basin to NTPC through an international competitive bidding”.

It added that the gas price was based on the linkage with international prices of crude oil and not with the cost of producing gas that was wholly a domestic product. “Our party has been consistently taking a stand against such import-parity proposition in respect to indigenously produced petroleum products,” it said.

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