Gas pricing: RIL 'favoured' by UPA, BJP keeping mum, says FIR

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The complaint, on the basis of which the FIR was lodged, alleged that impact of gas price rise would cost the country a minimum of Rs 54,500 crore per year at current dollar price. Reuters The complaint, on the basis of which the FIR was lodged, alleged that impact of gas price rise would cost the country a minimum of Rs 54,500 crore per year at current dollar price. Reuters
SummaryThe FIR was lodged under sections 420, 120-B of the IPC and under provisions of the Prevention of Corruption Act.

natural gas in the contract area identified as block KG D6," it said.

In the complaint, they alleged RIL had signed a contract with NTPC in 2004 to supply gas for its power plants at 2.34 dollar per mmbtu for a period of 17 years and it also signed an agreement with RNRL of ADA Group to supply the gas at the same price for 17 years.

"However, RIL went back on its word and refused to supply the gas at that rate which was clearly profitable for RIL," it said.

"Under RIL's pressure, the government, with Murli Deora as minister, revised gas price in 2007 to $ 4.2/mmbtu which was clearly malafide and an act of corruption," it alleged.

It also said the Supreme Court in 2010 held that price fixed by the government would be binding on all the parties.

The complaint also said that cost of production of gas is much less than 2.34 dollar per mmbtu and also referred to a May 22, 2009 letter written by RIL to DG Hydrocarbons giving its cost calculations which shows that "the cost of production is less than 1$ per mmbtu."

"This shows that the demand for an increase in gas price is only an indication of RIL's greed and its malafide designs. Also BP (British Petroleum) must have seen high returns from a known discovery at the current price of $ 4.2/mmbtu and thus, it invested about Rs 33,000 crore for 30 per cent stake in RIL's KG basin block," the complaint said.

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