The opposition Congress continued the attack on state government over failure of state-owned Gujarat State Petroleum Corporation (GSPC) to start gas production
Continuing the attack on state government over failure of state-owned Gujarat State Petroleum Corporation (GSPC) to start gas production, the opposition Congress has demanded a joint legislative committee to probe irregularities in the company's functioning.
Raising the issue in the assembly, leader of opposition, Shaktisinh Gohil, said that GSPC's Deen Dayal Block in KG Basin had been turned into Deen Dalal Block. "More than Rs9,000 crore have been invested in the block so far, but there is nothing to show for the results," he said.
Gohil said that as per its approved development plan, GSPC was slated to start production from the block in December 2011, but rampant corruption in the company's affairs had pushed back production to mid-2013. "We are not sure whether GSPC will be able to meet the new deadline," he added further.
The opposition leader said that the size of GSPC's development plan had increased 70% from US $ 1.6 billion to $ 2.5 billion, but state government was not bothered by it. He accused GSPC of acting against expert advice to provide undue benefits to Essar.
Gohil said that the CM had announced discovery of 2 tcf of oil & gas reserves, while the Director General of Hydrocarbons had certified 2 tcf. However, it is unfortunate that GSPC has not been able to recover any amount of gas.
The opposition leader alleged that GSPC was reeling under a debt of more than Rs5,000 crore, and the IPO was planned since other sources of funding had dried out. He accepted having written to SEBI about GSPC IPO, but added that it was keeping in mind small investors' interest.
"We demand formation of a joint legislative committee to probe functioning of GSPC," he said.
In response to the allegations, energy minister Saurabh Patel said that state government's investment of Rs100 crore in GSPC had grown to Rs16,000 crore. He accused opposition of creating obstacles in the way of GSPC IPO.
He claimed that dates for GSPC IPO had been finalised, but mutual funds and central institutions backed out of their commitments to subscribe to the IPO, just days before it. He alleged that this was done under pressure from the Centre and at the behest of Congress leaders.
"We don't need an IPO to raise funds for GSPC. The people of Gujarat are resourceful enough to raise more than Rs5,000 crore on their own," he said.
He refuted allegations of corruption in GSPC, saying every rupee spent by the company has to be approved by DGH.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=tracking}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
)
)
)
)
)
)
)
)
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}