Kejriwal has stirred the hornet’s nest with revelation about Mukesh Ambani and in a larger context about the business model of the country’s big industrialists in general. The stories percolating in the media and the public domain are raising serious questions about the business ethics and practices of these private companies appearing to follow all tricks to make money for the business heads and the company even by overlooking the overall national interest. I am sure if it is the face of the private industry, it is better to continue with public sector even at the cost of speed and efficiency of the private ones.
After many years of the awarding of the contract by the government, RIL has been proposing now to link the cost of KG gas with international crude prices and demanded a hike in the price of gas from $4.2 per million metric British thermal unit (mmBtu) that was already enhanced by the UPA government from the contracted value, to $14.20 – $14.51 per mmBtu.
Keeping all questions apart, can Reliance explain why it should be paid equivalent to the price for the imported gas? As the gas is produced on India’s soil with all the cost advantages, if the country is to pay the same amount what is the advantages of local production? For all the commodity produced in the country and for the use of the country, the price can only be on the basis of the cost incurred.
Further, as reported, as Maoist or abductors, RIL has gone on depressing production to arm-twist the government into accepting a hike in prices as shortage of gas supplies was hurting fertilizer and power units. As per the report of the Directorate General of Hydrocarbons (DGH) gas production is falling from 2009-10, the first year of production, targets were not met in 2010-11 and 2011-12. Was that the objective of giving the contract to the local company?
Can RIL give the technical reasons for low production of the gas to an expert group? Has it not been doing all these to pressurize the weak government?
Why do the business houses keep on demanding more and more privatization? Is it only to make the undue profit and creating personal wealth through all fowl means?
How has RIL been making so good a profit?
Whatever, Reliance is doing is anti national and against the norms of contract it entered with the government. The whole country knows how Reliance operates and makes money. But with Kejriwal raising the questions , the whole of the country will raise questions and doubt how Reliance is building its top line and increasing the private wealth of Mukesh Ambani to build his world’s costliest and ugliest residential facility in Mumbai.
Mukesh and Nita ! Change your life style and shun the management practices based on old business tricks and manipulation of the government machinery and help the country and community. You must do it in time before it is too late. Otherwise, the increasingly educated and empowered countrymen will be rising in protest against business community as they have already started doing against politicians. The country can’t any further tolerate the illegitimate nexus among politicians, industrialists and bureaucracy.
Mukesh ! If sure of your transparency in business, please clear all the questions raised and allow audit as the CAG wants you to do.