New Delhi: UPA government, Finance Minister P Chidambaram on Tuesday said huge penalties have been imposed on Reliance Industries for producing less than committed gas and bank guarantees will be taken before allowing any price hike.
Chidambaram, who was part of the decision to allow all domestic natural gas producers including RIL to almost double the natural gas prices from April, called the FIR registered by the AAP government against Oil Minister M Veerappa Moily and others for raising gas prices as “laughable”.
On top of this, the company has been asked to give bank guarantees equal to the incremental price it will get from April 1. This bank guarantee will be encashed if it is proved that RIL’s reasoning of water and sand ingress coupled with sudden drop in reservoir pressure leading to KG-D6 output drop are proved wrong.
Chidambaram said the government will not go back on its decision to raise gas prices for both public sector and private producers from April 1.
Days before he quit as Delhi Chief Minister, Kejriwal ordered filing of a police complaint against Moily, RIL and its Chairman Ambani for creating an artificial shortage of gas in the country and raising prices.
“Now, what is the status of FIR, I don’t know. I think it is a laughable FIR. If an FIR is being registered, it would be a laughable FIR,” Chidambaram added.
Moily himself had termed the lodging of the FIR as unconstitutional and against the principles of federalism.
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