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Rediff News  All News  » News » Did this letter to Reliance get Jaipal Reddy shunted out?

Did this letter to Reliance get Jaipal Reddy shunted out?

October 31, 2012 18:00 IST
Among the documents that Arvind Kejriwal handed out in his press conference on Wednesday, was a page from the letter from the former minister of petroleum and natural gas, S Jaipal Reddy, and marked as annexure 5, to Reliance Industries about its KG Basin oil extraction.

Kejriwal said in his press conference that under an agreement of 2009 with the government, Reliance was supposed to sell gas at $ 4.2 per mmBTU upto March 31, 2014. Midway now, RIL started demanding that the price be increased to $ 14.2 per mmBTU. "Jaipal Reddy resisted that and he was thrown out," and offered the page from Reddy's letter to Reliance.

In it, Reddy categorically states that the cumulative cost claimed by Reliance, of 457,000,000 dollars for 2010-11 and 1,005,000,000 dollars for 2011-12 was inadmissible.

Read Reddy's communication to Reliance here