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No signed pacts for gas supply to cos of Baalu's sons: Ministry
BS Reporter / New Delhi May 02, 2008

A day after Petroleum Minister Murli Deora addressed the Rajya Sabha on the controversy of gas allocation to two companies run by Shipping, Road Transport and Highways Minister TR Baalu's sons, the petroleum ministry clarified that there were no signed contracts for supplying the gas to the two companies.

The two companies — Kings India Chemicals and Kings India Power Corporation Ltd — are run by Baalu's sons.

In 1997, when the United Front government was in power, Kings India Chemicals was allotted 10,000 cubic metres per day of gas while Kings India Power Corporation Ltd was allotted 4.5 lakh cubic metres per day.

However, in the absence of a signed contract, the National Democratic Alliance (NDA) cancelled the allotment on January 14, 2004.

Deora told the Rajya Sabha yesterday that in May 2005, when the present United Progressive Alliance (UPA) government was in power, Kings India Power Chairman TRB Rajja wrote to Prime Minister Manmohan Singh, saying the company had been discriminated against.

"The two companieshave every right to write to the petroleum ministry just as many other companies write seeking gas linkages," said a senior oil ministry official.

Deora had also told Parliament yesterday that his ministry had not received any order from the Prime Minister's Office to help the two companies.

"The letters we got from the PMO were routine letters being forwarded to the ministry concerned," the official said.

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