Comments
Ahead of the Winter Session of Parliament, the Congress is trying to make an issue out of the ONGC’s reported move to financially help the ailing Gujarat State Petroleum Corporation (GSPC). The party accused Prime Minister Narendra Modi of using the public money to cover up a “scam”.
Congress spokesperson and former Union minister Jairam Ramesh told reporters on Tuesday that Modi had claimed in 2005 that GSPC had found gas of 20 tcf in the KG Basin. “After 11 years, they have found only 1 tcf of gas. Using this claim, he made GSPC borrow ₹20,000 crores of money from 15 public sector banks. GSPC squandered this taxpayer’s money recklessly through suspicious transactions with dubious companies in India, Yemen, Egypt, Indonesia, etc,” Ramesh said. He said the Narendra Modi government’s solution was to ask the ONGC to buy GSPC. “Because ONGC has net worth of ₹1.5-lakh crore, GSPC’s bad loans of ₹20,000 crore can be hidden. ONGC can be made to pay for GSPC’s loans and Modi’s past sins,” Ramesh said.
“Who took this decision for ONGC to buy GSPC? Most experts say there is very little chance to extract any gas from GSPC’s reserves. They value GSPC’s KG block at no more than ₹3,000 crore. Why should ONGC take on GSPC’s loans of ₹ 20000 crore for something that is valued at mere ₹ 3000 crore?” he asked.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.