[HumJanenge] Need for transparency in KG D6 gas block

N.S.Venkataraman


To

Humjanenge


The steep fall in  the performance and drop in production of natural gas from the  KG D6 gas block off the Andhra coast , which has resulted in the loss of opportunities to the country . is a matter of grave concern.  Several  chemical and  power projects in Andhra Pradesh  that were implemented based on the estimated gas output from the basin are now idling , causing loss of several thousand crores of rupees of investment. Substantial money are now being invested in laying gas pipelines based on KG D6 gas block output to several locations including Tamil Nadu.  Many plans have gone awry.

This project should not be  viewed as the failure of a private organisation or as a mere sick project.  On the other hand, we need to realise that it has caused a serious set back to the national industrial and economic growth.

The Reliance Industries has been asking the government  of India  to increase the price of natural gas , which the government has refused. Some people even suspect that the fall in production may be due to the refusal of the government to increase the price of natural gas, though there is no evidence for it in the public domain so far. If the government were to rise the price of natural gas owing to the pressure of Reliance Industries , then a scam of
multi crores of rupees would be suspected.

As a chemical engineer with over four  decades of experience in India and abroad, I do not believe that such drastic fall in gas output within a few months of operation  will happen in the normal course. In the present circumstances, the real facts are known only to the operator , due to lack of access for media or any other agency to scrutinise.   The matter has to be investigated very carefully by technically competent agency.

In any case, some steps have to be urgently taken to save the situation. The government of India should take over the KG D6 gas block  urgently from private promoters who have expressed their inability to  operate at targeted level and the government should invite international bidders to take it over. If a global tender would be floated, I am sure that excellent response would be received and the government would be able to restore the KG D6 gas block to the level of original expectations.

KG D6  gas block is a national asset and the country should not be made to suffer due to the failures of a private sector organisation, however big it may be.  A technical auditing by competent people is vitally necessary in this matter to ensure transperancy in the dealings of the private organisation as well as the government of India.



N.S.Venkataraman
Nandini voice for The Deprived
Email:- nsvenkatchennai@gmail.com