Should Govt petroleum products freight subsidy scheme visa Pay Reliance $14.2/mmBTU For K-G Gas
Politics apart, $14.2 — that is the value RIL is asking the government to pay for per Million Metric British Thermal Unit of gas from the K-G basin. (One cubic foot of natural gas produces approximately 1,000 BTUs, so 1,000 cu ft of gas is comparable to 1 MBTU. MBTU is occasionally expressed as MMBTU, which is intended to represent a thousand thousand BTUs).
The problem is under discussion in the federal government. The press conference was well-timed and is prone to strategically help a section in the federal government who doesn’t want to succumb to the pressure from Reliance.
Reliance has the contract — signed in 2000 — to extract oil from K-G basin.
Under the revised agreement of 2009 with the government, Reliance is presupposed to sell gas at $4.2 per mmBTU up to March 31, 2014. Much before 2014, now, RIL has been demanding that the price be increased to $14.2 per mmBTU.
Tapan Sen, who was a member of the standing committee on petroleum and natural gas, has been demanding since 2010 that urgent investigation be held into the “nexus” between the Manmohan Singh government and Mukesh Ambani’s Reliance Industries on petroleum products freight subsidy scheme visa K-G basin .
His voice didn’t reach millions despite his brilliant follow up of the problem. But Kejriwal has just managed that.