Ficci for transparency in allocation of natural resources

Ficci today said the government must observe transparency while allocating natural resources, amid Delhi government ordering filing of an FIR against Union Minister Veerappa Moily and RIL chief Mukesh Ambani for alleged collusion in the hike in rates of gas from KG basin.
"States have a duty that transparency and constitutionality be appropriately reflected in allocation of natural resources, and such access must be at equitable prices, allocation must be timely, and contracts rigorously enforceable," industry body Ficci's President Sidharth Birla said.
The statement comes on a day when Delhi Government led by Arvind Kejriwal ordered filing of criminal cases against Moily, former minister Murli Deora, Ambani and others.

"A great degree of care and responsibility is needed in re-visiting decisions if a needless trust deficit between industry, government and society is to be avoided, which can only vitiate business and investment sentiment," Birla said.
Chief Minister Arvind Kejriwal said the Anti Corruption Branch (ACB) of Delhi Government has been asked to probe the matter based on a complaint filed by former Cabinet Secretary TSR Subrmanian, Admiral Tahiliani, former Navy Chief and eminent lawyer Kamini Jaiswal besides a former Expenditure Secretary.
He alleged that RIL did not produce adequate gas from eastern offshore KG basin block so as to put pressure on the government to hike the price.

"Large investments and capital are employed in developing and delivering such resources and the need of earning equitable returns, in line with the marketplace, must not be denied," Birla said.
"In theory a scope of graft could exist in allocation of scarce opportunities or resources. There is a need therefore for minimal or no scope of discretion, and a regime where each side can be strictly held to contract," Birla added.
The government has already approved a proposal to price domestic gas at an average of international gas hub prices and actual cost of importing gas in its liquid form into India.