Dasgupta's fresh salvo at Moily

The CPI leader alleged the minister had repeatedly over-ruled the suggestions of senior ministry officials on the issue of increasing prices

After moving court over the issue of gas pricing, Communist Party of India leader Gurudas Dasgupta has written to Prime Minister Manmohan Singh, telling him Petroleum Minister M Veerappa Moily had stripped a senior ministry official of his charge for standing up to the minister.

Giridhar Armane, joint secretary in charge of exploration and pricing issues, was stripped of the additional charge of pricing; the assignment was transferred to another joint secretary, P K Singh. The order for reallocation of charges was issued on August 8.

Dasgupta alleged the minister had repeatedly over-ruled the suggestions of Armane and Petroleum Secretary Vivek Rae on the issue of increasing prices, according to the Rangarajan formula. "It is learnt the secretary and joint secretary had presented an analysis to the minister recently, with a recommendation that the decision of the Cabinet Committee on Economic Affairs to increase prices be put on hold until a decision was taken on the matter regarding providing shortfall quantity at the old rates," Dasgupta said in his letter.

The finance ministry had asked its petroleum counterpart to look into charging the earlier price from Reliance Industries for the shortfall in supply from KG-D6. Traditionally, gas pricing has been handled by joint secretary (exploration), though there is another post of joint secretary (natural gas policy).

Dasgupta had filed public interest litigation with the Supreme Court against the government's decision to almost double gas prices according to the Rangarajan formula. A hearing on the matter is likely in September.