The Flashpoints: Six Reasons Why Jaipal Had To Go
- Opposed RIL pressure to sharply revise the price of K-G basin gas to over $14 per mmbtu (currently $4.2) ahead of April 2014
- Linked investment clearance of K-G basin satellite fields with RIL agreeing to audit by CAG; RIL ready only for financial audit
- Served RIL notice to stop around $1 billion cost recovery in view of steep fall in K-G gas output; RIL has sought arbitration
- Allowed Cairn to ramp up production at Barmer after making new rule that any more exploration would be at zero risk to govt
- Cancelled four gas pipeline projects that were awarded to Reliance-owned company. The reason cited: undue delays.
- Reduced petroleum subsidy on LPG and diesel to help out oil firms and exchequer; was facing political pressure to relax the rules
It was evident from early this year that S. Jaipal Reddy’s days as petroleum minister were numbered. An uneasy atmosphere filled...