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Come clean on tax concessions to RIL: CPI to PM

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Press Trust of India New Delhi
Last Updated : Aug 05 2009 | 7:43 PM IST

The Communist Party of India (CPI) today demanded that Prime Minister Manmohan Singh clarify on supply of gas and its price from Reliance Industries-operated fields and "abnormal tax concessions" given to the company.

CPI also alleged that RIL's move to transfer Reliance Gas Transportation Infrastructure (RGTIL) to Mukesh Ambani would deprive other shareholders of the company to earn a profit.

RGTIL, under Mukesh Ambani, spent Rs 20,000 crore in laying a 1,400-km gas pipeline from Kakinada to Baruch but CPI said the company "was transfered to Ambani as a personal company for a nominal amount, depriving it of profit to RIL shareholders".

CPI in a statement said there were gaps regarding the quantum of gas produced from KG basin. "People have the right to know how much gas is produced from February till now and whether Reliance has slowed down its exploration to wait for immediate usage."

RIL had, however, began gas production in April and sales began only by the end of the month.

The party said the government's petition in the Supreme Court states that RIL cannot sell gas below $4.2 per mmBtu price. "This nullifies any scope for NTPC in obtaining gas at previously agreed rate of $2.34 per mmBtu. The (Petroleum) ministry is thus fighting against a Navaratna PSU."

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First Published: Aug 05 2009 | 7:43 PM IST

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