CPM opposes gas price approved for Reliance

CPI(M) has asked the Govt to reject the approval given by an EGOM to the price per unit demanded by the RIL on gas from the KG Basin, reports Sutirtho Patranobis.

The CPI(M) on Thursday asked the government to reject the approval given by an Empowered Group of Ministers (EGOM) to the price per unit demanded by the Reliance Industries Limited on gas from the KG Basin.

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“In spite of serious objections raised in and outside Parliament as well as opposition from the power and fertilizer ministries, the EGOM has reportedly permitted RIL to fix a highly inflated gas price of $4.2 per unit which is a token reduction from the original price of $4.33 per unit,’’ the CPM politburo said on Thursday.

The Left party said that while gas price should be based on the actual cost of production, the price agreed upon by the EGOM is based on the linkage with the international price of crude oil.

“The recommendation of the EGOM, should be rejected in public interest,’’ the CPM politburo demanded.

The party said this would severely affect the viability of consumer industries like power and fertilizer. “There is no justification for linking gas price with international price of crude oil and not with the actual cost of producing gas in the country,” it said.