13 April, 2021

Price Of Speculation

An adamant petroleum ministry refuses to bail RPL out

Price Of Speculation
Should the consumer pay for the wrong reading of the international market by a business house? Reliance Petroleum Ltd (rpl) almost got away slapping a bill running into hundreds of crores of rupees on domestic consumers when the petroleum ministry cleared a proposal whereby the company would be compensated from the Oil Pool Account (opa) for losses it incurs in its petro-export operations. In other words, the country would be paying for the incorrect and ambitious projections of the Ambanis.

Providing compensation for rpl was cleared on October 23 by the then petroleum secretary, S. Narayan. But later, when the proposal was sent up for final clearance to the Union minister of petroleum, Ram Naik, he took his time, fuelling speculation in the industry that the legendary Dhirubhai Ambani clout had worked. Naik, however, rejected the proposal and passed an order to the effect that export losses should be absorbed by the company rather than by the opa. The minister's office confirmed that the compensation package had been scrapped and that Narayan's recommendation that "Option A'...

More from Ajith Pillai

Latest Magazine

April 19, 2021

other articles from the issue

articles from the previous issue

Other magazine section