Why is Reliance so Angry - By Sucheta Dalal
I don't see any thing wrong in reluctance of Reliance to invest further in R-cluster of KG block especially when Govt. is unwilling to honour the terms of Production sharing Agreement in letter and spirit. Any person having even preliminary knowledge of oil/gas industry knows that oil/gas fields very often do behave as per human expectations despite technological advancements. If the KG block has not produced the estimated amount of gas due to penetration of salt water in the production zone how can you blame and penalize the contractor for an act that is not under his control. It is an act of God. Even an Insurer gets exemption for acts of God. Here the estimates of gas production were prepared in joint consultations with experts from Govt. as also regulator after examining technological data. It is strange that the experts from Govt. departments and Regulator are not questioned when estimated production is not forthcoming but the other party i.e the contractor is held responsible and denied possibility to recover his cost. Has ONGC or OIL India ever been penalised fro their failure to meet projected targets from their respective fields.? Are PSUs exempt from the Rules relating to imposition of penalty? Every business is conducted to make profit. No one can be forced to conduct business at a loss. Government is shying from arbitration proceedings and is delaying the process through every means it finds convenient. It should have some business sense. It imports gas at a price ranging between $15-20 paying precious foreign exchange but wants Reliance and others to produce the gas and supply it at a loss. Penny wise and pound foolish policy. more
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Dear Mr Jain & Amutham, Reliance will try to raise the price and ask for his benefit and corrupt trading as they have earlier help in large scale in Election to Modi. more
Jul 08
I agree with Mr. Kadal Amutham , anybody who knows Reliance are aware it is more of a corrupt trading organization than anything else, i have first hand experience of this organization. People who are on its rolls may tend to disagree more
Jul 08
Dear Mr. DK Jain, the growth of RIL is just by manipulating Government.It will make government to reduce import duty, the items it is importing, and increase the duty, it is producing. RIL has grown in this way all these years and expected to grow in this government too. It has grown not by technical expertise or business acumen, by simply greasing the right wheel at the government . Such business houses will never work on national interest. more
Jul 08
