That "RIL will make windfall gains from gas price hike: former secretary" (May 29) is a revelation. Former economic affairs secretary E A S Sarma has disclosed that Reliance Industries Limited offered to supply gas from the Krishna-Godavari basin to NTPC at $2.34 per million metric British thermal unit (mmBtu), but the group of ministers constituted by the government at that time chose to close its eyes and ignore the advice given by officials. This suggests the ministers concerned had a vested interest.
Also, it's difficult to fathom why Sarma was silent all these years. The implications of this development are not hard to guess - perhaps another major scandal is brewing. Fixing fair prices for natural resources such as oil, gas and coal is difficult. We must benchmark these prices to international levels. Moreover, if the government has reasons to suspect that companies are making windfall profits, then tax or royalty rate can be modified to moderate such practices.
M M Gurbaxani, Bangalore
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
