India to lose heavily, disproportionately on gas price hike:CPI MP

Government responded to arm twisting tactics of corporate

A veteran CPI MP Gurudas Dasgupta has been at a forefront to oppose hike in gas price while terming it suicidal and anti people. Dasgupta in an exclusive interview with Sanjay Jog explains his stand.

 

What is your comment on Centre's decision to increase gas price from April 1, 2014 onwards?

 

The government's decision is definitely disastrous and suicidal one. Why the pricing is done in dollar when the imported coal is not being priced in terms of dollar? Linking it with dollar, the recipient or contractor will be the beneficiary. Why on the basis on dollar payment, it is a matter of mystery. This was done during the BJP led NDA government and the UPA government is continuing that line. In the wake of declining the exchange rate value, the outgo will be more and if the price rises, the country will lose heavily and disproportionately.

 

Why are you opposing it?

 

The government has agreed to double the price without any scientific study of cost of production per unit, what has been the actual revenue and what has been the profit. It is reported that the contractor has recovered much more that what was invested. Further, the government did not study the impact on two main users -fertilizers and power sectors.

 

The increase in the price of power per unit will involve more subsidy from the states. Stake holders are not consulted and the government has taken the decision without due diligence. Therefore, it is not only anti people, disastrous but in violation of all norms of appropriate functioning of the government machinery. The government cannot do it. Our battle will continue in and outside the parliament.

 

Neither the states were consulted nor the opinion of main users were taken into consideration. The decision was taken without analyzing. The government has responded to arm twisting methods of corporate.

 

Do you stick to your earlier observations that gas price rise is a scam?

 

It is certainly a mega scam. In view of the collusion between the corporate and the petroleum ministry, we have seen that a petroleum minister was removed in the past. This apart, there has also been the involvement of the finance ministry and the planning commission. The timing of the government's decision is more intriguing as the deal has been struck on the eve of election. It is a known fact that the corporate is generous in making political investments.

 

However, the finance minister in his defence clearly said that gas price hiked due to low domestic output. What is your take in this regard?

 

Chidambaram's justification is a villain's argument. The hike in gas price will further accentuate the price rise, will increase the electricity cost, spur the industrial cost of production and it will ultimately be placed on the shoulders of consumers.

 

So according to you what options the government should have explored to avoid gas price rise?

 

Why to rely on a single contractor. As per the production sharing contract, the government should have taken the control of the area in which the contractor had failed to produce. The government should have made the allocation of that area to other contractors through international competitive bidding. That would have substantially reduced our dependence on a single contractor as there would have been many more contractors. However, the government is deliberately allowing monopoly of a single contractor.

 

Do you want government to reconsider its decision?

 

At the outset the government should not have resorted to price hike but the defaulting contractor should have been taken to the task. The contractor should have been put under pressure to produce 80 million standard cubic meter peer day of gas as promised in the contract.

 

It is quite annoying that the government instead had taken the statement of the single contractor correct and decided to increase gas price. It is known that all contractors are after profit. However, it is not the job of the government to ensure that contractors alone make profit but it is the government's job to protect the interest of the country and also its natural resources.

 

The government has clearly defaulted in discharging its constitutional duty to the country. The government will have to review its decision and the rise in gas price be done only after carrying out a proper technical evaluation.