The Left parties have stepped up pressure on the Centre to delay the increase in the price of domestically produced natural gas.
Questioning the Centre’s “hurry,” the parties said if the Government decides to hike the price, it will result in “windfall profit” for the Reliance Industries.
Left leaders Gurudas Dasgupta, Sitaram Yechury and Abani Roy told reporters here on Monday that the Planning Commission, the Finance Ministry and the Petroleum Ministry were subverting every procedure to push RIL’s demand for increase in gas prices.
The Left leaders claimed that a number of bureaucrats and two senior Cabinet Ministers are against revising the prices.
“Why there is hurry? There is enough time to talk to the stakeholders. The Government is taking a disastrous step after being arm-twisted by a corporate group,” Dasgupta said. The leaders also questioned the silence of other parties on this issue.
They demanded that the Centre should hold discussions with States and other ministries on the issue. They said Parliament should also discuss the gas pricing issue as any step in this regard can have an impact on the agriculture and power sectors.
Yechury said even if the Government hikes the gas price based on the recommendations of the Rangarajan committee, which suggested $8.4 per mmBtu, the subsidy burden will go up to Rs 1.5 lakh crore annually. “Reliance Industries is demanding $14 per mmBtu. The cost of fertilisers and power will increase manifold if the gas prices are increased,” he said.
The Left parties also demanded that the matter be referred to a group of ministers.
“Why is the government in a hurry to pass this proposal? Why is there no group of ministers on the matter? Why have the states not been consulted on the issue? Why is the calculation of gas prices being done in dollar terms?” Dasgupta asked.
Dasgupta said as the rupee was declining against the dollar, RIL was benefiting and it “systematically reduced” the production from its KG Basin.
When asked about Petroleum Minister Veerappa Moily’s charge that the import lobby and vested interests are opposing gas price revision, Dasgupta said the only importer of gas were two public sector undertakings GAIL and PLL.
“Our vested interest is to maintain the interests of the country and the people,” Yechury said.