Moily says no going back on gas price rise decision

New rates likely to be $8-8.4 Vs current price of $4.2 per mBtu, are based on proposals of panel formed at request of Moily's predecessor, S Jaipal Reddy

Coming down heavily against Delhi Chief Minister Arvind Kejriwal for ordering an "unconstitutional" First Information Report (FIR) against him and others for raising gas prices, Petroleum Minister M Veerappa Moily on Friday said the government will not go back on its decision to raise rates from April 1.

"It (the decision to raise gas prices for both public sector and private producers) has gone through a governance process. It was considered by the Cabinet twice and approved twice," Moily said. The new rates, likely to be at $8-8.4 against the current price of $4.2 a million British thermal units, are based on the recommendations of a committee appointed by Prime Minister Manmohan Singh at the request of Moily's predecessor, S Jaipal Reddy.

This week, Kejriwal had ordered filing of a police complaint against Moily, Reliance Industries and Chairman Mukesh Ambani for allegedly creating an artificial shortage of gas in the country and raising prices.  

He said the FIR was "a very clear case they were exercising powers extra-constitutional and rather I would say it was contrary to constitutional provisions." Moily said the decision to allow public sector undertakings like Oil and Natural Gas Corporation, and RIL, a rate equivalent to the average price prevailing at international gas hubs and cost of importing the fuel into India in the past 12 months was based on the recommendation of a panel headed by the Prime Minister's Economic Advisory Council chairman, C Rangarajan.

‘No norms compromised in granting green nods’
Moily said he had followed all rules and did not compromise on any norm in granting forest and environment clearance to a host of projects since taking over one and a half months back. Moily has cleared projects of Rs 150,000 crore and is nearing clearing the backlog.

The key approvals accorded include one for Posco's $12-billion steel plant in Odisha.