Press Note Eng Dt:23/10/2012 Cross Country Pipeline Projects_GSPC

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Press Note                                                                   23^rd October, 2012

• After wasting over Rs 8000 crore in explorations in KG basin, Egypt and elsewhere, The Narendra Modi government is in the process of committing another mega scam in GSPL’s cross country pipeline projects.
• The Modi administration is in the process of rigging bid conditions to help a Kutch-based pipeline manufacturer. By rigging the bidding, GSPC board is allowing monopoly of the group, which is known for its unholy nexus with Modi and BJP leaders.
• I have learnt from reliable sources that the bid for three pipeline projects will have such conditions that it would suit only one company, which has already created a cartel of contractors.
• I have also learnt that the pipeline company has promised Rs 500 crore funds to the ruling party for Gujarat assembly polls in return of the favour in the form of selecting his pipelines.
• Some top bureaucrats of GSPC, GSPL, Energy department, finance department and CMO are involved in the scam, which is in the making.
• Gujarat Cm Modi owes an explanation to the state: Why no transparency in the bidding process and why open market competition is being thwarted to unduly favour one particular company, whose track record is highly dubious.
• CM must understand that these pipeline projects are in joint venture with central PSUs like IOC, HPCL and BPCL. I am writing a letter to the CMDs of these PSUs regarding the nefarious designs of the Modi government to unduly benefit one private industrial group at the cost of public exchequer.
• Where is 20 TCF gas that CM announced way back in 2005? How much gas has been produced from blocks in Egypt and other countries ?
• Earlier, at the behest of Chief Minister, majority stake in GSPC’s Pipavav power plant was given in the most dubious way to one non-existent Swan Energy without any bidding process. The deal was cancelled only after I filed a PIL in the Gujarat High Court.
• Again at the behest of the Chief Minister, a 5000 crore project of LNG terminal, proposed for Pipavav in Saurashtra, has been shifted to Mundra, again to benefit another pet industrialist.

In this proposed project, there is absolutely no transparency regarding shareholder agreement between GSPC and Adani and waterfront rights of the proposed project. And no bidding route is being to award contracts for building the terminal.

GSPC’sgroupcompanyGSPL had bagged three cross-country gaspipelineprojects Mehsana-Bhatinda (1,611 km), Bhatinda-Srinagar (740 km), and Mallavaram-Bhopal-Bhilwara-Vijaipur (1,738 km).

GSPL holds 52percentstake, while other JV partnerssuchasIOCL, BPCL and HPCLwillhave 26 per cent, 11 per cent and 11 per cent stakeholdingrespectively. These three projects are worth over Rs 13000 crore.

Now,executionof thesepipelineprojects are abouttobegin so the GSPL and Modigovernmentofficials are preparingtenderdocuments regarding awarding contractsforpipeline projects.

Itis learntfromthe insiders thattendersforprocuring pipelines andcivilworksare being prepared in such amannerwith certain conditions that only aKutchbasedpipelinemanufacturingfirmgets selected as solesupplierof pipelines. This is aimed at thwarting competition, which would bringcompetitiverates, and allowmonopolyof a single firm, which would create cartels of itsowncontractors for civil works.

This is being done at the behest of theChiefMinisterbecause thefirmconcernedhas reliablyofferedelectionfunds ofRs500 croretotherulingpartyin thestateassemblypolls. Earlier, thiscompanyhad, again byriggingbiddingprocess, obtained contracts ofsupplyof pipelinesforwater supply in the BJP government.

In this scamin making, severalhigh profileofficials of the GSPL, GSPC, energydepartmentand financedepartmentare involved tocarryoutthe dealasperinstructions
of CM.

Narendra Modi runs theadministrationon double standards. He talks abouttransparencyandproprietybut does not find such qualitiesasdesirablevirtues inprivatepractice. His is the shamelesslymostcorruptgovernmentin thehistoryofmodernGujarat.

In last 10 yearsunderNarendra Modi’s rule,Gujarathas seen multibillionrupees scandals in theenergysector. Under the Modi rule,statePSUGSPC and energy and petrochemicalsdepartmenthave emerged as the epicenter of all mega scandals involving thousands of crores.

Earlier, in the name ofexplorationRs8000 crorepublicmoneyhasbeen drowned in thedrainby thismostcorruptregimein thehistoryofGujarat. ThisChiefMinisterhadpubliclyannounced that 20 TCFgas reserveshave been found in GSPC’s KGbasinblockand within three years, that gas would be brought toGujarat. Seven years have already gone and there is noindicationof even onestandardcubic feet gasfromKG basin or fromvariousblocks inEgyptand elsewhere.

If this wasnot enough,majoritystakein GSPC’s gas basedpowerplanthadbeen given on a plattertoonenon descriptSwanEnergyin amostcorruptmannerwithout anybiddingor anytransparentprocedure.

Not only themajoritystakewassold, thismanifestlycorruptadministrationhadeven given away70 % of thecarboncredittoSwanEnergy,whosepromoters are knownforundertabledealingswith BJPleaders.

Toensuresuch modernday white-collar plunderers do not loot that publictreasury,
I had toapproach the GujaratHighCourt challenging theveracity of thedeal. Subsequently, thesaid deal was cancelled.

If the CM hasan iota of shame and sense ofproprietyand sincerity in him, he mustprovidea candidpublicexplanationon theirregularitiesbeing committed at hisinstancetobenefitone company, which has adubioustrackrecordin gettinggovernmentcontracts.

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