If someone thinks I am here to help RIL, history will speak against him: M Veerappa Moily

Interview with Oil minister

After taking bold decisions on the phased diesel decontrol and cash credit of LPG subsidy, petroleum minister M Veerappa Moily is taking the next risky step of gas price hike that could invite political wrath. In an interview with Jyoti Mukul & Shine Jacob, the minister denies any conflict between Vijay Kelkar panel and the recommendations of Rangarajan committee. Edited Excerpts:

Are you concerned about the impact of rupee on oil marketing companies especially since it may delay full diesel decontrol?

Oil sector is the worst hit by rupee depreciation. Every year, we import $160-billion worth of petroleum products. For every one rupee depreciation, we lose Rs 9,000 crore annually. Since the fundamentals of our economy are very strong, I believe that this is just a passing phase. The finance minister is taking measures which will help in stabilising rupee.

The government has set up Vijay Kelkar committee after suggestions were made by the Rangarajan committee constituted by the prime minister. Wouldn’t there be an overlap?

Rangarajan has given his suggestions and we will adopt the methodology on gas pricing till the end of the 12th Five Year Plan. Kelkar committee has been constituted not only for the methodology of pricing after the 12th plan period. It would also prepare a roadmap for self sufficiency of gas and oil production. The idea is that by 2020, 50 per cent of the imports would be curtailed and by 2025, 75 per cent of it would be curtailed and would reach energy independency by 2030. Where Rangarajan has left, Kelkar will pick up. There is no conflict at all.

CPI leader Gurudas Dasgupta has alleged that you are favouring Reliance Industries Ltd on gas price hike. What is you take on this?

If someone thinks that I am here to help Reliance, history will speak against him. I was law minister when there was a legal battle (RIL versus Anil Ambani group’s Reliance Natural Resource Ltd case) in which Reliance was involved. I can very well say that I was responsible for the Supreme Court to lay down a law saying that natural resources belong to the nation. If I wanted to help Reliance or if that lobby played on me, I could have supported them. Today that landmark judgement would not have been there.

What has been the progress on the direct benefit transfer in LPG?

We launched DBT in 18 districts on June 1. I am very happy to say that we have seen 40 to 50 per cent success within this time. Three-tier project management committees extending to national, district and state levels would review the progress and after that we would decide on the next level of implementation.