Deora told to discuss stand with colleagues

Petroleum minister Murli Deora has been asked to hold “wider consultations” with other key members of the Union Cabinet before declaring his ministry’s stand in Parliament and Supreme Court over the gas dispute between Anil Ambani’s Reliance Natural Resources (RNRL) and his rival brother Mukesh’s Reliance Industries (RIL).

The UPA brass decided this after two developments. One was Anil Ambani’s letter to Prime Minister Manmohan Singh last week, alleging the ministry was biased. The younger Ambani also attacked the oil ministry for its “apparently biased and partisan role” during his speech at the RNRL annual general meeting yesterday.

During the UPA government’s first tenure, an empowered group of ministers was looking at issues involving pricing and distribution of natural gas from RIL’s D6 field but the EGoM has not been reconstituted so far.

The ministry, however, is unlikely to change its stand overnight, Congress sources suggest. In its reply to Parliament, too, scheduled for Monday, it may defend itself on the logic that a national resource cannot be wasted as a result of a private war between members of a family — the line it pursued in its petition and affidavit to the court recently.

Sources in the Prime Minister’s Office (PMO) privately admit the letter and the outburst of Anil Ambani has “created an embarrassing situation” for the government as “this has never happened before in the UPA regime”.

Following these allegations of RNRL, petroleum minister Murli Deora held a meeting with Finance Minister Pranab Mukherjee and Law Minister Veerappa Moily.

As the issue now involves the image of the second UPA government, top Congress leaders feel wider consultation between other ministers and Deora would help the government take a more “cautious approach” in this sensitive matter. “This step is likely to help us avoid getting involved in corporate controversies,” remarked a minister.

PMO sources also said that before the ministry gives its reply to Parliament on Monday, the draft will be discussed by some key ministers and the PM, too, might take a look at it.

Congress sources said Mukesh Ambani met Mukherjee yesterday and the younger Ambani was scheduled to meet the finance minister late in the evenning today.

In his letter to the PM, Anil Ambani said there should be no disruption of gas supply to the existing users of KG-D6. He also assured that his company would fully protect the national interest.

In his AGM speech on Tuesday, he lashed at the petroleum ministry and said, “It is evident that the apparently biased stance commenced in 2006, coinciding with changes in the ministry. I am not casting aspersions on the integrity of individuals here - I am sure that they have good reasons for their stance.”