Petroleum Minister M. Veerappa Moily.
The Aam Aadmi Party (AAP) is now gunning for another corporate house: the Ruia Group. AAP leader Prashant Bhushan has alleged that Petroleum Minister M. Veerappa Moily is enabling Ruia's Essar Oil to benefit by $9.2 billion, by allowing it to start exploration work at the Ratna and R-series oil blocks.
Earlier, AAP leaders had also made allegations against Mukesh Ambani and Gautam Adani.
Bhushan maintained that Essar Oil had bid for the blocks in 1993, and won them in 1996, but the actual contract could not be signed. The contract has now been signed, but at the new prices of oil and gas, instead of the prices prevalent 23 years ago - to which Essar, at the time, had agreed. The new contract is applicable from April 1 this year. Bhushan demanded the Election Commission defer the matter till after the elections. "The decision at this time will be a violation of the model code of conduct and ought to be stopped by the Election Commission," he said.
Bhushan backed up his allegation by releasing some of the internal communications within the petroleum ministry relating to the matter. He claimed many of the bureaucrats involved were not in favour of signing the contract. These were blocks decided upon before the New Exploration Licensing Policy was finalized.
Due to various inquires relating to other blocks awarded during the same period, the contract was delayed. And subsequently the petroleum ministry adopted the NELP regime in 1998.
The documents supplied by the leader revealed concerned bureaucrats suggesting the block either be re-auctioned or retuned to state promoted ONGC.
However, the spokesperson of Essar Group in a statement issued said, "Essar was awarded the Ratna R-series block in an open and transparent manner through a bidding process. We are not aware of any internal notes or documents of MoPNG in the matter. However, it is in the national interest to make any block operational especially when there has been significant delay already and the country is importing over 70% of its crude requirement at a high cost in foreign exchange."
Bhushan alleged that the petroleum minister over-ruled the opinion of cabinet secretary, finance ministry, petroleum secretary, planning commission. Bushan sought court monitored inquiry into the matter.
Petroleum Minister Moily could not be contacted for his comments.
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