Friday, August 23, 2013

CPI's Dasgupta questions $8.4 an mBtu gas price

Communist Party of India () leader on Thursday again trained guns on the Centre for the gas price rise.
In a letter to Prime Minister , Dasgupta alleged the cost of production for Ltd (RIL)’s block was just $ 2.74 a million British thermal unit (mBtu). He added the Rangarajan pricing formula would give them a windfall gain through a pricing of $8.4 an mBtu.

Dasgupta asked Singh to revisit the pricing of by the , applicable from April 2014. Citing petroleum ministry figures, Dasgupta said the ministry had admitted that after computing from the financial statement of RIL in 2011-12 on projected level of production, the cost of production, including levies, worked out to $2.74 an mBtu.“If the cost of production is only $2.74, how has Rangarajan come to the conclusion that it should be $8.4 per unit to be given to the contractor? Evidently, it is a case of lack of due diligence,” the letter said.

Earlier, Dasgupta had filed a public interest litigation regarding the decision on gas pricing at the apex court, on which the response from the petroleum ministry, RIL and minister M Veerappa Moily would be heard on September 6.

No comments: