CPI(M) favours fresh bidding for KG basin gas

New Delhi, Sept 8: Communist Party of India (Marxist) MP Ajay Chakraborty demanded that the empowered group of ministers (eGoM) should recommend for fresh bid through an open and transparent tendering process for the vexed issue of gas pricing in the Krishna-Godavari (KG) basin.

In a letter to Prime Minister Manmohan Singh, he also accused the eGoM of only delibrating on the gas pricing issue and avoiding several key issues.

He said that eGoM should consider raising of capital cost of the project from 2.47 billion dollars to 8.84 billion dollars without any propotional increase in the production of gas.

The basic of project cost management signifies that doubling of production need not translate into doubling of capital cost, he said.

The absence of clear cut policy on gas transportation will lead to monopoly in the business environment, Mr Chakraborty said.

The bidding done by private contractor for determining the market price has raised serious issues on the whole aspect, he said.

UNI