KG D6 Basin Scam

To all Indians — India is NOT ruled by Politicians , as it was in the past , but by TRAITORS.

KG D6 Basin Scam — A Joint Venture between Senior BJP / RSS Leaders and Congress President Sonia Gandhi ( who was also UPA Chairperson , when KG D6 Basin Scam took place )

Indian ENERGY Reserves ( Petroleum Reserves , Coal and Gas Reserves ) that is also a part of India’s Energy Security , should always be with the Central Government as it was envisaged by Founding fathers of this country. Private players should NEVER be allowed into this Higly profitable industry. Few People the significance of petroleum industry for an economy like India

KG D6 Basin is INDIA’s BIGGEST OIL AND GAS RESERVE , discovered by ONGC in 1993.

KG Basin spreads across more than 50,000 Square Kilometers in the Krishna River and Godavari River Basins in Andhra Pradesh. The largest Oil & Gas Block is known as D-6 block.

An office of Directorate General of Hydrocarbons (DGH) was created in 1993 as the key regulator for the petroleum business in the country.

It was in 1999 under Atal Bihari Vajpayee’s NDA government came up with the New Exploration Licensing Policy (NELP) allowing private players to enter the fray. A lame excuse given by Atal Bihari Vajpayee’s NDA Government was the Indian government lacks capital for rapid expansion in exploration and production of petroleum resources of the nation.

In the first round itself Reliance Industries Limited ( RIL ) bagged the contract for exploring deep water D6 block of the Krishna Godavari river basin in Andhra Pradesh constituting an area of 7,645 square kilometres.

A Hydrocarbon Production Sharing Contracts (PSC) was signed in April 2000 between the government and Reliance Industries Limited (RIL) and its minor (10 percent) partner, NIKO Resources Ltd (a Canadian corporation), for exploration and production of gas/oil.

In 2011 the Comptroller and Auditor General (CAG) of India came up with a report on Performance Audit of Hydrocarbon Production Sharing Contracts in which the Reliance D6 gas business was taken up for a detailed scrutiny.

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The report offers significant insights about all the three aspects of the business: its exploration, investments involved, as well as pricing of the gas produced.

Ambani Brothers’s owned Reliance — is a perfect example of How MULTI TRILLION DOLLAR Business Empires can be built purely on CRONY CAPITALISM.

How Sweetheart Deals Are Given To Crony Businessmen , Allowing Them To Make Windfall Profits. This is how Crorepatis become Arabpatis climbing the Ladder made of REAL Gold/Silver. An Example of How country’s Precious Natural Resources are sold out Private Business Houses , close to the Ruling Family..?

Hydrocarbon Production Sharing Contract (PSC) put forth by Ministry of Petroleum and Natural Gas (MoPNG) is inherently a very Complex , quite Vague , Confusing and FAULTY Contract , which involves sharing Production and Profit ( another Private — Public Partnership “…BU!!SH!T…”) that would make BILLIONAIRES into TRILLIONAIRES. Another reason is , the Government wants to ensure that common people don’t understand — what KG D6 Basin Scam is all about..!!

As per the contract , in the initial phase Reliance Industries Limited ( RIL ) will share OIL and GAS + Profits with Ministry of Petroleum and Natural Gas (MoPNG) , finally after crossing three different phases ( by 2008 ) — Reliance Industries Limited ( RIL ) will ENTIRE relinquish KG Basin Scam to ONGC.

Instead , with connivance of Ministry of Petroleum and Natural Gas (MoPNG) and Directorate General of Hydrocarbons (DGH) , Reliance Industries Limited ( RIL ) HIJACKED entire KG Basin. This happened around 2009, after UPA Government under Congress President Sonia Gandhi came to power.

The excuse given by Reliance Industries Limited ( RIL ) is that they have not yet recovered their investments.


Reliance Industries Limited ( RIL ) sells Oil And Gas to other neighboring countries , NTPC and Indian government.

Till Reliance came into the fray when only the public sector unit , ONGC was involved in Oil and Gas business, it was the government that would administer the gas prices. It needs to be noted that the gas prices have serious implications for two of the critical industries, Fertilizer and Power, where it is a vital input; for instance 10% of electricity in the country is being produced through gas. ONGC sells Gas to NTPC and Indian government at a price of US $ 1.2 per Mmbtu.

Reliance Industries Limited ( RIL ) sells Gas to neighboring Bangladesh for US $ 2.2 per Mmbtu.

In 2004, RIL was about to sign Gas Sale and Purchase Agreement with NTPC for its 2600 MW Kawas and Gandhar power projects for $2.34 per Mmbtu. This was for 17 years. Soon after that RIL had second thoughts about its bid and refused to sign a Gas Sale and Purchase Agreement forcing NTPC to file a suit against RIL in Bombay High Court in December 2005; the case is still sub judice.

As the matter was Sub Judice — Reliance Industries Limited ( RIL ) approached the Union Government.

In 2007 , Pricing of KG D6 gas was referred to an Empowered group of ministers (EGoM) led by the then Union Finance Minister, Pranab Mukherjee, who approved a rate of $4.2 per Mmbtu for five years. This undermined the ongoing NTPC plea for $2.34 price in the court as then the government itself was fixing the higher gas price for RIL. It might be noted that till 2008 ONGC was being paid only $1.23 per Mmbtu of gas.

This was deliberately done in a faulty manner to favour Reliance.

The Empowered group of ministers (EGoM) led by the then Union Finance Minister, Pranab Mukherjee, asked a selected set of bidders ( from the user industries ) to quote a gas price according to a vague formulae , which fixed the price within a narrow range of $4.54 per Mmbtu to $4.75 per Mmbtu. With this as the basis, EGoM declared the price to be $4.59 per Mmbtu which was later revised to $4.2 per Mmbtu. This was the highest price for Gas that anybody has received for natural gas anywhere.

By October 2012, Reliance Industries Limited ( RIL ) has sought price of $14.2 per Mmbtu for KG D6 gas, straightaway more than FOUR times increase, even before the period of present fixed price gets over in Aril 2014 and a committee headed by the chairman of the PM’s Economic Advisory Council has been formed to look into it.

While RIL continued to sell and EXPORT Oil and Gas from KG Basin , it refused to share any profits with Ministry of Petroleum and Natural Gas (MoPNG) claiming massive capital investment in building constructing and production / processing facilities and pipelines. It also claimed that Oil and Gas reserves in the basin is only 20% of their earlier estimates , which made it commercially unviable. It’s a clear case of Gold-Plating the cost.’

Finally , it refused to sell OIL and GAS to Indian government and NTPC, unless it was paid US $14.2 per Mmbtu for KG D6 gas. Another reason , it gave for not selling OIL and Gas to Indian government and NTPC was precipitous decline in production due to technical snags.

As a result , Power plants in various parts of the country to the capacity of nearly 20,000 MW , owned by NTPC are lying idle without GAS. These Gas Powered Power Plants have been built with bank guarantees of around Rs. 30,000 Crores. As a result Fertilizer was also being imported. This is a huge loss to the nation, Oil and gas production was being suppressed for want of REVISED price ( $14.2 per Mmbtu ).


Indian Government continues to purchase Gas from ONGC for $1.83 per Mmbtu

In the meantime, in spite of lack of gas and production, Reliance has managed to offload a 30% stake in 23 hydrocarbon blocks, including D6, to British Petroleum for $7.2 billion in 2011 and the deal was cleared by none other than a cabinet committee headed by the Prime Minister Dr Manmohan Singh. This is a windfall for Reliance Industries Limited ( RIL ) , but it is the loss to the people of India. Never mind that Reliance was supposed to be only the contractor and the assets belonged to the people of the country!

Reliance Industries Limited ( RIL ) has simply refused to share information beyond the accounting books with CAG saying that it is a private entity.

List of Congress / UPA Politicians involved in KG Scam:

1. Congress president & UPA Chairperson Sonia Gandhi

2. Murali Deora — Union Minister for Petroleum and Natural Gas

3. V K Sibal — Directorate General of Hydrocarbons

4. P.Chidambaram — Union Finance Minister

5. Pranab Mukherjee — A senior member of the Cabinet Committees on Economic Affairs, Infrastructure, Parliamentary Affairs, Political Affairs, Prices, Security, Unique Identification Authority of India and World Trade Organization. He is also a member of the Congress Working Committee, the highest decision-making body of the Indian National Congress.

6. Pulok Chatterjee — Head of Empowered Group of Ministers ( EGoM ) and Principal Secretary in the PMO. After former Principal Secretary in the PMO , TKA Nair exposed CWG Scam in 2010 to the Indian media , Sonia Gandhi forced Dr Manmohan Singh to accept Pulok Chatterjee as his Principal Secretary.

Murali Deora — Union Minister for Petroleum and Natural Gas is an AGENT of RIL Chairman Mukesh Ambani , according to Subramanium Swamy — His son Milind Deora has around Rs 80,000 Crores in LGT Bank , Europe.

Under Murli Deora , the Petroleum Ministry circumvented rules to allow Mukesh Ambani’s Reliance Industries Limited (PIL) to benefit at the cost of Government’s own financial stake in development of K G Basin, considered India’s Largest Gas Fields.

RIL Chairman Mukesh Ambani , had famously told Corporate Lobbyist Neera Radia that “…Congress to.apni hi Dukan Hai” — that Sonia Gandhi led Congress Party is just like my own shop

How V K Sibal — Directorate General of Hydrocarbons HELPED Reliance Industries Limited ( RIL )..?

V K Sibal ( or Vinod Kumar Sibal ) is related to Kapil Sibal , Minister of Human Resource Development and Minister of Communications and Information Technology. On 7th of October, 2009, the Directorate General of Hydrocarbons (DGH), through full-page advertisements in mainstream Indian newspapers , stated that the capital expenditure at RIL’s KG-D6 field had gone up from USD $ 2.47 billion to USD $ 8.8 billion due to a Three-Fold rise in plant capacity , doubling of output, 16 additional wells and a host of other facilities.

DGH significantly reducing the penalty amount for RIL for not sticking to work commitments, a leniency that was denied to some State-Owned Oil And Gas companies. ;

DGH forcing State-Owned Oil And Gas companies to form an Alliance with RIL for Rig Sharing in an arrangement that hugely benefited RIL. ;

DGH and Petroleum Ministry Officials favored RIL by allowing the company to arbitrarily inflate Capital Expenditure in the KG D6 block.

How Reliance Industries Limited ( RIL ) returned the favour..?

In return , Reliance Industries Ltd ( Mukesh Ambani Group ) bought several flats in Mumbai for V K Sibal and his family , they also incurred expenses over purchase of Consumer Durables for V.K Sibal daughter.

A Houston-based company — GX Technology (GXT) and its Indian representative — Sujata Venkatraman , showered favours on V K Sibal and his family members , there are allegations that the entire cost incurred by Sonia Sibal, the former DGH’s younger daughter, in completing a Hotel Management course from one of the Prestigious Institutes Of Switzerland was borne by Sujata Venkatraman of GX Technology (GXT).

YSR Reddy — Andhra Pradesh Chief Minister opposed giving KG Basin to Reliance. He asserted that Petroleum reserves in KG Basin belonged to people of Andhra Pradesh.

He was assassinated in a mysterious Air Crash. His son Jaganmohan Reddy has asserted that Congress President Sonia Gandhi is behind his father’s untimely Death , as she wanted to carve out Telegana.

Later RSS, helped UPA Government under Congress President Sonia Gandhi carve out Muslim dominated Telengana by dividing Andhra Pradesh.

YSR Reddy — Andhra Pradesh Chief Minister was widely popular amongst Telegu people — and he was opposed to division of Andhra Pradesh to create Telengana — a longstanding demand of Muslims in Andhra Pradesh and local muslim party MIM.

Sonia Gandhi as Congress President and UPA Chairperson, with help of TRAITOR — RSS Leaders created the ISLAMIC STATE of Telengana , against widespread opposition from Telegu people of Andhra Pradesh..

Congress President Sonia Gandhi and Rahul Gandhi are believed to have 33% shares each with KG Basin ( Reliance Petroleum ). In total they have 66% Shares — meaning they have majority stake in Reliance petroleum ( KG Basin )

Also Read my other BLOGS
Was former Tamil Nadu Chief Minister J Jayalalithaa Murdered..?

India is world’s No 1 in Thorium-Based Nuclear Technology Programme ( Fast Breeder Reactor — FBT), ahead of USA, Russia and China. This was before Sonia Gandhi led UPA government came to power.

Both BJP and Congress Party work like a Team against national interest, with blessings of Senior RSS Leaders.

To all Indian guys

Whether it is KG Scam , Thorium Scam , Augustra Westland Scam or creation of Islamic State of Telengana — Senior RSS leaders have always helped Sonia Gandhi behind the scenes. They are hidden No 1 Traitors to the Hindu community. It is they who appointed Brajesh Mishra ( Sonia Gandhi’s henchman ) as Principal secretary to the PMO.

Once BJP / RSS workers & small time Hindutva Leaders discovered that Brajesh Mishra was Sonia Gandhi’s Henchman , RSS Leaders ran a SHAM campaign to remove Brajesh Mishra from the PMO. This was to FOOL junior BJP / RSS leaders and workers.

N.K Singh ( OSD to the Prime Minister Atal Bihari Vajpayee ) — was a Most Powerful Bureaucrat , when Indira Gandhi was the Prime Minister of India. He is hardcore Corporate Lobbyist. He was a Rajya Sabha Members nominated by JD(U) very close to Bihar CM — Nitish Kumar , later before 2014 General Elections he immediately joined BJP and became Lok Sabha MP. Consider JD(U) to be a PROXY for Congress in Bihar. JD(U) is funded by BLACK MONEY of Nehru Gandhi family.

The then BJP President L.K Advani , Bihar CM Nitish Kumar and CPM leader Prakash Karat joined together to NIX the chances of APJ Abdul Kalam to become President 2nd Time. His candidature was opposed by Congress President Sonia Gandhi. BJP and Left Parties then supported Senior Congress Leader Pranab Mukherjee ( & Sonia Gandhi’s Henchman ) as Next President of India. To all Indians Senior RSS Leaders are hidden TRAITORS to Hindu Community.

My other articles -

  1. KG Scam & Crony Capitalism
  2. Crony Capitalism in India
  3. Sahara Diaries on Payoffs to Top Politicians in India
  4. Congress Leader s Diary on Payoffs to Top Politicians in India
  5. BJP what does it stand for
  6. BJP and Congress Party are ONE TEAM
  7. Narendra Modi Government — what does it stand for

Please read

KG BASIN GAS : Sordid Saga of Duplicity and Subterfuge:

, accessed on Dec 04, 2012.

Newsclick Production, KG Basin deal : Murky valuation of Gas prices & Production costs


, accessed on 06/12/2012.

Also Read my other BLOGS
Was former Tamil Nadu Chief Minister J Jayalalithaa Murdered..?