The wheels of the nation can move smoothly when power supply is available in plenty and without any interruption

The Rangarajan Committee’s recommendation to fix the price of domestically produced gas at about $8 for Reliance Industries (and obviously, for others) was not welcomed by the company. The public reaction was such a move would have rippling effect on the economy and would increase costs everywhere. Andy, finally, the shocker, if can say a mild one at that, came from Veerappa Moily that the gas price be fixed at $6.77 per mmBtu (million metric British thermal unit).

The natural gas requirement in India is 286 mmscmd (million metric standard cubic metres per day) against the estimated (falling) production of 111 mmscmd.  Rest has to be imported unless expeditious actions are taken to increase indigenous production.

Although recently Reliance announced a substantial discovery of gas at its D-6 block, it will take around three years or more before this supply can hit the market. No doubt other explorers may strike a bonanza, and continuous efforts are being made to tap coal methane gas also.

There has been a public uproar to Moily’s statement that import lobby ‘threatens’ the decision making process at the oil ministries. As is usual, he later claimed that he was ‘misquoted’.

This issue of escaping the wrath of the public by ducking behind the ‘misquoted’ or ‘misunderstood’ or even ‘mis-interpreted’ statement would not arise at all, if in future, all the press meetings are ‘officially’ video taped and recorded. Such a move will put an end to any debates as officially recorded ‘evidence’ would be available!

The wheels of the nation can move smoothly when power supply is available in plenty and without any interruption. At this stage of domestic shortages, it is foolhardy to think of supplying power to Pakistan, whose industries are in bad shape. While it is sad to see them in this state, we have enough areas in the country that are in total darkness because of lack of power!

In any case, even though India extended MFN (Most Favoured Nation) status to Pakistan couple of decades ago, the latter has not reciprocated this facility to us. Why then must we supply power to it?

We must remember that it has taken years for the southern states to be in the national power grid and it is still, supposedly one more year or so before they will be connected. Power charity, should begin at home.

In the meantime, our approach to the problems faced in the oil industry needs some innovative thinking and expeditious and realistic actions.

Take the issue of permitting Cairn India to ‘reclaim’ the surrendered area in Barmer, Rajasthan, where it is already fully entrenched, but cannot be cleared without the Cabinet approval.  This sounds childish, though technically and legally, the government stand to go through the formalities may be right. In such cases, where the applicant has a proven track record and competence, discretion should be used to clear the matter and reinstate the surrendered area to it, so that it can go ahead in full swing. 

India needs these natural resources urgently and in plenty. In such cases regulatory approvals required by the oil and gas generators should be handled expeditiously and generously.

Meanwhile, even though India, along with eight other nations, has received exemptions from the US to import oil from Iran, it is in our national interest to concentrate on our domestic resources, as these are vital to our very survival. After all, what happens if the situation in Syria precipitates Iranian support and the trouble in Balochistan as a sequel to Musharraf’s arrest leads to trouble there, all of which can create a mess in the Strait of Hormuz, resulting in a shipping blockade?

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)