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FUEL POLICY

Theft of natural resources

Subhash Grover

This book is dedicated in memory of MY YOUNGEST BROTHER RAKESH GROVER 22.05.1959 - 29.07.2011 WHO DIED IN AIRCRAFT ACCIDENT AT ALIGARH, UP

ABOUT THE BOOK Title : FUEL POLICY THEFT OF NATURAL


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Author Owner & Publisher

: Subhash Grover : M/s. Om Publication

Address for Correspondence of Publisher: Om Publication, 11, Gazetted Officers Colony, Ambazari Layout, Nagpur-440 033. Printers First Edition No. of Copies Language Size Print Area Paper Used : Urdu Printing Press, Mominpura, Nagpur : Dec. 2012 : 1000 (Under print) : English : 120 x 160 mm : 90 x 160 mm : Bilt 70 gsm Maplitho

Suggested Contribution : Rs. 50/-

PREFACE: With the complete monopoly of natural resources, bureaucrats hand in gloves with the politicians, who are ruling this country since independent have been systematically involved in making billion of dollars for
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themselves and their families. It is seen that a person who joins the politics as a Corporator and used to travel by local bus, in short time with the blessings of dynasty and multinationals have amassed huge wealth which is beyond imagination of common man. This would not have been possible without the active support of accountable persons like bureaucrats and executives. The scope of mining mafia has been so enlarged that some mafias are now Cabinet Ministers. Scare national resources would not have been misused to such an extent unless there was an independent agency like Transparency Commission, CVC, CBI, and would have been acting as an independent watchdog without any political pressure and that there would have been proper checks and balances at distribution, exploitation and production level Unless preventive measures are taken, this country will continue to be dependent either on import or resource mobilization from third countries despite optimum reserves. The puppet Govt. agencies we rely to keep checks and balances of our national resources are replica of laughing Budha blessing good luck to the politicians and total protection for highly corrupt bureaucrats for committing all wrongs but keeps smiling at the cost of common mans misery. The people in power paid from the common mans funds supported by dynasty, ruling this country since independence, politicians, bureaucrats swallow 25-30% development cost simply because constitution gives
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them power to be custodian of national reserve and court has given them freedom of looting. In simple and straight forward terms babus, politicians who are no more than the watchman of the national assets but acting like owner by stealing major junk of resources only for themselves because the agencies responsible for checks and balances are puppets in the hands of bureaucrats and politicians. The recent agitation of IAC (India Against Corruption) it was revealed that all the politicians, bureaucrats and executives are strongly opposed to independent of transparency commission, competition commissioner, CVC, CBI and want even CAG and Supreme Court to be subordinate to the politicians through peoples court i.e. Parliament. With 60% of parliamentarian who are not studied up to matriculation

and almost all top leaders hiding their background, more particularly, education, criminal background and finance. There is hardly any politician who is worth calling an honest administrator or Pandit of portfolio, for which are entrusted for managing the national assets. Out of total 15% of parliamentarians do not know even how to sign and still rely on use of their thumb impression instead of signature but comes in the category of national leaders, average parliamentarians are having 9+ children and about 10% of parliamentarians practice bigamy but 95% of parliamentarians are billionaires holding above 100 crores of rupees in assets against the average income of common man which is half dollar or 26 Rs per day. The entire assets our parliamentarians have amassed is during their political career only.

How can we expect as an Indian with such a leadership, dishonest and corrupt bureaucracy managing the country and nations resources will be exploited for the benefit of common man. The book pertaining to energy resource, policies and manipulation will give a firsthand knowledge as to how Governments inefficiency, dishonesty and ignorance of managing the resources has made a common mans life so miserable that common man starved for the energy after 65 years of independence for energy which is required for just two times meal. AUTHOR

INDEX
Sr.
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Page No. (From To)


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No. 1.

Laughing

Budha on

Govts dole 8 to 13

-Monopolizing Energy Policy by the Govt. (such as Mineral Oil, Gas, Coal, Forest ) - exploiting the masses. 2. Subsidy on Kerosene Pandora of 9 to 24 Govt. managed corrupt system through 3. 4. 5. 6. 7. PSU and how to avoid it Black Gold Glitters in UV Light 25 to 41 Gas, Necessity, Politics & Corruption 42 to 47 LPG Mockery of Govt. Policy for 48 to 49 domestic use Shale Gas 50 to 56 Why the Petroleum Product does not 57 to 74 attract 8. provision of Competition Chor (free 75 to 87 Commission Alibaba Aur

Solah

allocation of goldmine entry strictly 9. 10. 11. 12. for politicians) CBM ( Coal Bed Methane ) Clean Energy Conclusion Authors Profile 88 to 93 94 to 101 102 103

LAUGHING BUDHA ON GOVERNMENTS DOLE:

Monopolizing the Energy Policy by the Govt. (such as Mineral Oil, Gas, Coal, Forest etc ) exploiting the masses: It is important that we should look in to the energy need of the country, more particularly; domestic energy for cooking and for generating electricity. The energy for domestic purpose is derived out of 4 main sources i.e. LPG / CNG / Petroleum fuel & Kerosene etc i.e. mineral oil/Gas, which is under the total control of Govt. agencies more particularly, under the PSU Oil Companies which is main cause of
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rampant corruption in the system and Govt. fearing loss of huge profit is not willing to part with private players. Secondly it is Coal which is also completely controlled by the Govt. recently CAG report revealed allocation of coal blocks due to shabby policies of Govt. has cost Rs One lac eighty six thousand crores of rupees net loss to the nations exchequer and this was allocated by none other than PMOs Office to help few business houses through politicians. Since the Coal is allocated on quota system to the selected players, it is not accessible to public at large for domestic use at least in the city. The probable reason is pollution due to smoke. Alternative fuel is Wood which is protected by Government under the Conservation Act as a result sale of wood for burning purpose is practically banned. The only alternate energy now is electricity which is scare. The average cost of domestic electricity is Rs. 7-9 per unit on slab based rates, besides use of electricity for high wattage heater for cooking from the domestic meters is not allowed due to higher wattage and low voltage, more particularly for cooking and if this option is exercised middle class person has to change the entire wiring and will require higher capacity meters. Even otherwise, electricity in Tier II cities is hardly available for 7-8 hours per day and cannot be relied for its consistency, 90% of electrical distribution is also controlled by the Govt. or Govt. owned agencies. It is for the Govt. to answer or to come out with white paper what is the alternative fuel on which common person should rely after 65 years of independence for mere two times meals and if so how? The straight answer is to decontrol entire Govt. machinery and Govt. to concentrate only on exploration and production in Oil & Gas sector so that national asset are not misused by controlling and marketing sale of
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hydrocarbon through PSU Oil companies, nowhere in world this sector i.e. marketing and sale of oil and gas is under the government except in India and simplest answer is for profit and personal gain. The Govt. is only making profit in all monopolized sector of energy where the Govt. is in control of end product though its employee, who are Pandora of corruption. In power sector, Govt. is concentrating in issuing licenses to private entrepreneurs for generation of electricity whereas distribution and transmission is in the hands of Govt. The result - Govt. purchases the power at very high cost and distributes it showing losses. Between 40 to 50% transmission losses are due to stealing electricity hand in glove with its own employees and Govt. is not willing to hand over transmission and distribution system to private parties. Similarly, oil exploration, PSU, E & P, Oil companies are robbed out of its profit by selling its proven reserves to multinational or big business houses for through away prices and then selling the petroleum product first by charging huge tax from the general public and then subsiding very small part at discounted rates, through PSU Oil Marketing companies in monopoly, so that Govt. is left with no money for exploration and production. The result is these losses are compensated by imposing tax at very high rates as well as charging exorbitant local taxes resulting in the rampant corruption in the Govt. machinery. The result is that the straight forward people are sufferers. The theft is so common in supply point that every PSU Oil Company and their supply points are known to have been involved in several wrongful activities. Moreover, 10% of crude, more particularly diesel is smuggled through high sea and sold in open market by the smugglers, hand in glove with our security services, whereas the local production is smuggled to neighboring country or stolen openly through the pipe line.

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The Govt. and PSU oil companies are mere spectators or beneficiary through private contractor or mafia, who are involved in hefty profit and parting the same to PSU Executives. What is not known to the public that 5% total oil is pumped from abundant wells by the mafia with concurrent consent of E&P Oil Companies, the crude is processed at local refineries with the different nomenclature and sold as fuel. For oil and gas reserves which our Hon. Supreme Court calls as National Asset but justifying the raise in price in favor of private players + loss of royalty revenue. Which in fact is link to production as such price is directly proportion to profit in contractors coffer due to raise in prices and tax over the sale price (as royalty also included in the sale price) Say for example the price of petroleum product is increased by 10 Rs a liter by PSU oil companies. The Govt. immediately is beneficiary of 4.7 Rs. profits due to increase in the tax and E&P contractors who manages the national resources at the behest of Govt. and develop the field will make profit of Rs. 5.30 without spending a single rupee and this increased amount will be appropriated development towards escalation to him as increase in the cost of i.e. the money borrowed by E&P

contractor from the nationalized bank wherein the Govt. is guarantor for repayment so contractor enjoys the raise in price of national reservoir and benefit is passed on to the contractor indirectly for the work which is already completed long back by utilizing common mans funds through the banker. It is similar to the payment of revise salaries which has retrospective effect like revise payment to the Govt. servants in case of 6th Pay Commission. In Coal Scam Hon. Supreme Court has set an example that nations commercial assets need not be auctioned and Govt. has prerogative of
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utilizing the same as they feel fit, the judgment was delivered none by the CJ of India just before he retired. By doing do he has paid back all the obligation of Govt. and also secured proper future for him. In simple terms Govt. can get indirectly what they cannot get directly subject to the overlooking or objecting agencies like Court, Vigilance Commission etc. It is something like laughing Budha

who is smiling at the masses for their misery but bringing good luck to the babus / politicians for every hike in prices.
In the case of forest, almost all forests are State Governments property. They are auctioned for economic reason or higher profit. We are all aware how forests are misused. In the event of coal which is also a national property is reserved for big industries only by allocation of blocks in favor of few. The policy of coal is changed by Govt. in favor of big industries at the whims of Coal Ministry and PMO hand in glove. Even though about 135 million tons of coal is imported every year from Australia, Indonesia and some of the African countries, contrary to the fact India is largest reservoir of coal and lignite which is untapped less than 2%. It is time that Govt. should clarify to the nation about the fuel policy of the country for a common man and over the national assets. ..o

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SUBSIDY ON KEROSENE OR PANDORA OF CORRUPTION: The subsidy on Kerosene is brain child of politicians, bureaucrats and Oil Company executives, so that competition in this field of petroleum section shall never take place and they will continue to enjoy unfair means by allowing hydrocarbon reservoir / blocks, dealership etc. to their kith and kin and continue with practice to promote the corruption for personal gain in perpetuity. This practice must stop at least after 65
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years of independence when 1/3rd of our total foreign earning is drained only for purchasing crude. The Govt. themselves admit that 42 crores of people in India live below poverty line as certified income by the government is Rs 19 per day in rural area and below Rs. 26 or 1/3rd of the US dollar in urban area. There is no way that subsidy and corruption can be avoided unless government decides to give up providing unfair benefit to their own pupil for vote bank politics. In democracy they have three wheels of holy chariot over which 3 Charioteers namely politicians, bureaucrats and executives are managing the chariot and unless they work united and manage the chariot to drive in one direction the chariot will not move. The present practice of fuel monopoly more particularly petroleum monopoly by the politicians and bureaucrats leads ultimately to Switzerland and tax heavens. The chariot is pulled by the common man in the name of nations energy requirement, how is it possible wheel moving forward if the three charioteer are running the chariot in three different direction at the same time, since the whole chariot is managed by the Jr. Executives, Govt. servants and they keep beating common man for pulling the holy chariot without knowing the direction. The simplest way is that Govt. should come out with a white paper as to why 42 crores of Indias population as claimed by the Dept. of Population Control lives on an earning of meager income below Rs. 19 per day after 65 years of independence and the accountability of Govt. It is published in Times magazine that only in 2G telecom scam the nation lost 1,85,000 lacs crores of rupees, the role of this government itself was sinister and corruption in the ministry was exposed only when the difference between the government and its own party were surface, the
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sum of 2G losses alone to the nation are more than subsidy amount to 42 crores BPL card holders who live below poverty line. If we revert back 25 years old practice, when there was acute shortage of milk, Govt. introduced milk @ Rs. 2 to Rs 6 in the packets through the Govt. Milk dairies, why the Govt. cannot give 3 to 4 liters of Kerosene per family unit per month in the packet / bottles through Ration shop to each persons who claim to be BPL card holder, rather than allocating quota based system and then blaming falsely to public for the irregularities. Attention of public is further drawn that in China which is having almost equal population and scare of fuel resources the domestic fuel is supplied after spending about 5 billion dollar through CNG piping for the nationwide network for the domestic gas. The entire China, more particularly cities are supplied with natural gas through pipeline for domestic use. The price for natural gas even by European standard and market rates are much lesser than subsidized CNG and Kerosene in India. India which is short of both funds and resources for purchase of petroleum product, had to keep gold reserve of RBI mortgaged with Swiss Bank, when Mrs. Indira Gandhi was Prime Minister for paying petroleum import as such no country was willing to extend credit for few months. Despite such bitter and shameful experience same Govt. continue to pay approx. 2 lac crores per annum in favor of subsidy for almost 25 years, presuming subsidy of 5 billion dollar for 15 years, Govt. lost 75 billion dollars, only on subsidy since last 15 years. Less than 1/3 rd of amount could have been sufficient for laying the pipeline in most of the Indian cities for supply of natural gas for domestic use. The motto is unambiguously clear the entire subsidy is linked to vote bank politics and
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not for any relief to BPL people. This state that governments planning body, more particularly, Petroleum Ministry has not given any attention intentionally. Recently state Government in Gujarat has earmarked approx. 30,000 crores or approx. 0.60 billion dollars with the object of providing natural gas for domestic use through pipeline to avoid subsidy and corruption in this field and has laid approximately 22500 km of pipe line for transportation of CNG for domestic and industrial purpose. However, the policy of supplying natural gas by the Govt. to power plants which is exclusively used for burning can be substituted by coal by giving preference to domestic solid fuel like coal, lignite etc. rather than CNG. It is a political decision rather than pollution control as such pollution after consuming natural gas is almost same to coal except the emission of carbon dye oxide is slightly more. It is only to facilitate power house which are now licensed to powerful lobbies to burn our natural resources with throw away price or free of cost. Similarly, fertilizer is available in international market for th of production cost in India but almost all the fertilizer plants are owned by the politician or ultra rich. They are enjoying subsidized petroleum quota of naphtha and CNG by forming co-operative societies to manufacture fertilizer. So they continued to enjoy the preferential treatment in the name of poor and farmers. In the past Govt. has advanced several hundred crores of rupees to a Turkish firm in advance for purchase of urea without even shipping a single bag. This state petroleum policy and import policy pertaining to petroleum product and subsidizing the same is purely a political decision to fool the millions of people and encourage systematic corruption.

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Recently the erstwhile Petroleum Minister involved in corruption scandal both in allocation of additional fields to 2 firms namely RIL and Cairn without bidding was revealed, he was further involved with active cooperation of Ministry of Petroleum for awarding contract worth 200 crore rupees for unproven marker test @ Rs 5,61,000 per liter against market rate of Rs 800 per liter to his close relative M/s. SGS Pvt. Ltd. without process of law, though he has opted to resign, however, his request was synchronized with condition of appointment of his son who is also MP to be inducted as Minister. This prove that country is heading for dynasty democracy and transparency is no where visible. The PSU Oil Companies all over the country have lube plants owned by PSU Oil Marketing companies. They have facility to pack lubricant in 1, 2, 3 and 5 liters capacity on its highly priced imported packing plant despite their plant operate at only 10% of capacity for filling pouch required for mixing lube in petrol or diesel in 20 or 30 ml pouch 90% of plants capacity is ideal. The lube sale in Nagpur is few hundred KL per month whereas capacity of Khapri plant to pack the pouch near Nagpur alone is several millions pouch per day sufficient to cater whole of Vidarbha Region without even spending one paisa, but the plant is totally unutilized and can be converted for packing 3 liters of subsidized Kerosene which can be sold through Collector to BPL card holder with existing ration shops. It is only 1 packet per family unit per month and volume will be extremely small without any overhead. Such practice will not be implemented by the Oil Companies, though it is fully transparent. But ministry by giving some excuse or other will never implement such practice, alternatively manual packing machine for packing kerosene in pouch, cost only Rs. 10,000 to 15,000 can be supplied to SKO dealers by PSU Oil companies for better accounting system under the supervision
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of Food & Civil Supplies. When the HSD and Petrol dealer can be supplied with dispensing unit why not supply SKO Dealer with pouch making machine so that Kerosene leak if any is curbed. We now see Government has paid in one year and 5 months amount of Rs. 200 crores to SGS Pvt. Ltd. for totally unproven test claiming to be test adulterant. In fact the same very Govt. and the same very Ministry knew that said test is unreliable since 1939. Despite several requests BIS authorities have never added any such test in their Specification. In order to make fast bucks Govt. first published in Gazette Notification claiming the test comply IS specification which turned up to be blatant lie to fool millions of people that this test is incorporated with IS specification and thereafter after swallowing 200 crores withdraw the test and again published GR claiming the said test to be unreliable. In process 113 dealers lost their dealership due to failure of test which tern out to be simple color / die test. Another millions were spent on court litigation, harassing to public was different and loss to the employees working in small units of R/O lost their livelihood for good. In Minutes of Meeting held on 25th September, 2008 with Principal Secretary an unqualified bureaucrat holding the charge of allocation of contract of unproven test through MnO & PG kept on stressing the reliability of Marker Test till five days before the test was withdrawn to ensure that the firm should be reallocated with contract, which was introduced by Ministry and causing loss of Rs. 200 crores this amount was in fact siphoned off systematically by single bid process without advertisement. Despite objection from all quality control technicians / officers he kept on stressing the test is double the reliable vis--vis the IS Test. What was more surprising that the Ministry did not have know-how how to check this test as such manufacturer M/s. Authentix, UK has not supplied test procedure, same
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being confidential trade secret was not known to anyone not even to R & D Lab of any PSU Oil Marketing Company. It was a Principal Secretary alone who kept on convincing about reliability whereas the QQ Manager kept was objecting to the reliability. It is only after matter was forwarded to CBI through CVC the test was deleted all together. This very incident demonstrates why a pay or empowered the servant of Govt. who were expected to protect the interest of Govt. but stealing the revenue generated from the common man by justifying in favor of dubious manufacturer that without even knowing the head and tail of what they were doing. It is only after 5 days the test was declared unreliable and removed from the test procedure from the date this minute of meeting took place but only after 200 crores of tax payers amount was pocketed by Minister, Secretary and PSU Oil company executives. In another incident the Principal Secretary of the Ministry was involved in hiding the facts by not allotting similar tenders to other two Spanish and Italian Companies. Even though the contract awarded to British Company through its Indian sponserer who was relative of Minister was extremely faulty. The contract was awarded to British firm but amount was paid to the Indian counterpart who was relative of Minister. All these facts of concealing single tender contract awarded to M/s. Authentix, UK is well documented in CAG report but the CVC was shy to utter a single word about irregularity. Though no action was taken either by CVC nor by CBI, despite clear provision in the law and CVC has also never bothered to verify the authenticity of test or revealed the outcome of investigation and courts have dismissed several such cases only on verbal deposition of PSU Oil Companies that test is reliable. In fact it was false affidavit and purported to mislead the court for justifying concealment of gratification by the higher authorities i.e. Petroleum Minister and
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principal Secretary, and Oil Executives were amongst the beneficiary of huge bribe and the matter was kept secret stating that it involved national security risk. If the said amount of Rs. 200 crores would have spent for providing pouching machine to the Kerosene dealers, it would have cost only few crore rupees for filling Kerosene with appropriate printing on each pouch for systematic distribution of product to the end user i.e. BPL cardholder. This justify as to how bureaucrats, executives and politicians involved are benefited in such illegal practice and has cause great loss to the country and if the system is corrected when the matter was agitated it was justified that the marker test and its reliability is unproven but effects of implementation is prospective. In simple words if any wrong doing is done by the government servant till such time the irregularities are notice it is valid and after it is prove that it was faulty and omitted then only it is irregular but prospectively. In simple word, if you are stealing Govt. money and caught and reprimanded only after next theft it is a crime but earlier irregularities carried out by babus are lawful, if not caught. The Government has already started filling 5 Kg. LPG Gas and despite all 3 PSU oil companies with huge ideal infrastructure, there are at least 2500 gas plants in the private sector which are totally closed and can be outsourced for filling this facility. What is required is will that there should not be any difference between margin of subsidy and nonsubsidized gas so there cannot be any theft from the gas cylinder. The theft from cylinder is very common as such consumer does not take any precaution of weighing before taking delivery. Alternatively, the gas dealers were also found the filling water in the gas cylinder and this is the major case of frequent bursting of cylinders because hydrostatic test on year on year basis is not carried out by the contractor though contacted, it
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is only on paper. Furthermore, the Govt. has kept practically LPG/CNG i.e. rate of methane and propane at par to justify subsidy, rather than allowing importing condenser which cost 50% cheaper than refineries LPG output, the very intention is to keep the private players out of petroleum business. In Nagpur and surrounding area alone there are 10 private refilling plants which are shut down due to subsidy of PSU Oil companies on LPG. This can eliminate Kerosene subsidy all together from the market if Government so desires. There are as many as 300 plants all over the country manufacturing gas cylinders but Govt. has not opted to place the order for the 5 Kg Cylinders, fearing if this practice is implemented PSU Oil Companies will be out of business. It is pertinent that even for the hydrocarbon sector there are ways to avoid malpractice of subsidized product for BPL card holder. The Govt. is so afraid of introducing this practice. Say for example in State Excise department the alcohol tanker carrying rectified spirit or extra neutral alcohol while on transshipment from distillation plant to packing plant is accompanied by State Excise Officer, who is responsible for transport of product in tanker from distillation point to destination point. Any manipulation enroute he loses his job. He is entrusted with the police powers to protect the product. The PSU Oil companies with surplus of 36000 employees can depute their surplus officers to accompany with kerosene tanker till destination point rather than sitting in the air conditioned office and watching films on internet. Otherwise PSU Oil companies can hire the services of police or state reserved police for the similar job, with the current rate of Rs. 300/- per person per day, presuming 25 lac population of Nagpur the supply of 25 tankers per day will cost only Rs. 7500/- per day and monthly cost will be Rs. 1,87,500/-

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per month ( for 25 days ) or yearly Rs. 22.50 lacs which is half the salary of Class IV employees of oil companies. This provision is known to all PSU oil companies and there are competent people who are sitting in Ministry, Bureaucracy and Oil Companies. They fully understand how to avoid unfair practice but what return other than salary they will be entitled to except displeasing their superior, even otherwise they have secured job, the problem is of WILL & HONESTY This country has been involved in nationalization of practically every asset. When cement industry was monopolized by issuing licenses to 2 companies i.e. ACC & Birla till 1982 and the country was importing cement from South Korea. It is only when govt. could not cope up with the import and allegation of bribe were surfaced on the then Chief Minister of Maharashtra A.R. Antuley the Govt. rushed for cement manufacturing in country through the Private entrepreneur. In one year alone the cement industry was deregulated, the country became exporting nation. Even today the Govt. owned CCI i.e. Cement Corporation of India is only Cement Company which is sick unit all other are exporting and profit making companies adding billions of dollars to national exchequer. Similarly, when ISSCO Director wanted to modernize steel plant to compete with Mitsubishi of Japan, Congress Party in power demanded one crore bribe in favor of party fund, which is well documented in minutes of meeting held before winding up of ISSCO. The Govt. instead of granting loan nationalized the ISSCO but could not manage the ISSCO and passed on to State Govt. For 40 long years the factory remained closed and Govt. kept on paying salaries and wages, without any work till
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it was transferred to SAIL. Mitsubishi of Japan which was lesser known than ISSCO earlier to nationalization, when the modernization was proposed has became multibillion dollar company, whereas ISSCO is in shamble, it is only when the Mitsubishi talk with Govt. for takeover of ISSCO failed, the unit was handed over to the Sail. Same is the case of Scooter India Ltd and hundreds of Cotton Mills which are now sold by Govt. to builders and developers after their palms are greased. A live example is Air India which was nationalized by taking control from TATAs and today 60 aircrafts are lying idle for want of fuel as PSU Oil companies refused to extend credit facility. Most of the infrastructure of airline remains idle due to frequent strikes mostly for non-payment of wages. The wages and salaries of employees are paid from the dole of Govt. coffer despite knowing the Maharaja is dying, however, the Minister kept ordering new aircrafts and sick Corporation is paying interest on 10 billion worth of order waiting to be executed. Same is the case with TATRA when the Army General made a complaint for bribe against the Tatras agent. The Defence Minister did not reveal or took any action. Rather than taking action govt. ensured that matter should be suppressed. The TATRA which cost in open market for 40 lakh rupees was sold to army for 1 crore with outdated technology. The recent probe of CBI reveals that BEML has not even developed basic infrastructure for TATRA to be manufactured at BEML plant as per contractual clause ensuring import to continue in perpetuity. There are number of examples but not even tip of iceberg is known to public. The public spending by the Govt. bureaucrats and politicians alone cost Govt. approx. 5000 crores per annum. The President of India alone has spent 300 crores on world tour and Prime Minister has spent 1000 crores for non-productive foreign traveling during his tenure with zero result. This
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is a unique case of the country where Finance Minister justify on one hand the plea of 42 crores people living below poverty line but spending on himself almost 10 times more than most developed country despite knowing there exists 5.6% of deficit and it is growing up due to extravagant spending of government servant and politician. If this is called development what should be the definition of corruption. The above deposition and facts are in public domain, systematic bribe and corruption is so rampant especially in Government PSUs that not a tip of iceberg is known to the public. It is important that some independent agencies should go to the merit and demerit periodically to expenditure and income of politicians, bureaucrats and PSU Oil marketing executives so that government should be accountable to the common man. o..

BLACK GOLD GLITTERS IN UV LIGHT

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It is very important that public at large should be acquainted with the policy of subsidizing petroleum product, more particularly, Kerosene and Diesel. The Kerosene is claimed to have been used as adulterant and cause of many court litigations. The Ministry as well as Oil Companies relies on assumption that the R/Os are involved in adulteration. In fact, the truth is other way around. There are approximately 30 and odd agencies who keep vigil on retail outlet (Petrol Pump) only. Out of every 100 liters of subsidized Kerosene, 35% of total Kerosene is purchased by the industries directly and in bulk right from the depot, under nose of PSU Oil Companies with active co-operation of Food & Civil Supplies. The SKO dealers directly sale to the industries as such concealment of income derived out of sale without bill is normally verified by the tax department from the electricity bill and the simple source to compensate or conceal the income specially Excise and VAT is by using diesel generator where BPL Kerosene can be used instead of diesel without any bill / invoice. The cost of electricity though claimed by the board is only 7.40 per unit but it you take the entire computation in to account the actual bill including taxes and other overhead cost of electricity through the board comes to plus Rs 9 to 11 per unit, whereas generating cost of electricity by using BPL Kerosene is not more than Rs 3.50 per unit and that too without any overhead risk. Since no setoff is allowed on taxes paid either to the boards electricity or diesel, purchasing Kerosene hardly makes any difference to the industries. Most of the steel industries in non-coal belt rely on BPL Kerosene only for generation of electricity for their factories. This gives double benefit
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to the industries first the black money is generated since the excise and tax is stolen in the first place, secondly the income derived from the sale does not attract income tax, this is synchronized with low cost of production if the subsidies BPL kerosene to be used in generators and there is no risk to factory owner or SKO dealer only two authorities have to be taken in to account first is excise and second the police, SKO Dealer take care of the company official who are on his regular roll as beneficiary and for regular income they are always willing party, hence there is only win-win situation. The acts can be verified from the market where entire steel trade is carried out on cash and carry basis without bill. This practice gave double benefit to the manufacturer. As and when the Excise & Income Tax authorities take a surprise inspection the first verification carried out is from the electricity reading from the electric meter. Adopting policy to manufactured steel or any other product by using generator give advantage to the manufacturer to revert back generator meters which normally indicate number of hours and can be turned zero as and when the handler want. No one verify the how the product is manufactured whether it is by using Diesel or Kerosene or anything else Secondly, the dealer can show frequent replacement of generator and claim depreciation and sale old generator as and when he wants. It is pertinent to note that Kerosene can be purchased directly from the Kerosene dealer which is more systematically controlled by the State agency and supplied by the IOCL. It is matter of common sense, why the truck or a transport vehicle should take recourses of R/O where they will have to pay 50% of the excess amount for the same quantum of product whereas same kerosene is available in Govt. Ration Shop or kerosene dealer directly by paying 50% less than the diesel cost. It is observed that
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20% of the entire BPL product is directly sold to the transporter by the Kerosene dealers which go totally unchecked. It is further stated if the allegation of adulteration is made against the R/o dealer, the strict onus lies on the Company to demonstrate the point of supply as such only source of supply is depot only which is controlled by the PUS Oil Company i.e. IOCL and supplied through its Kerosene Dealer who are inspected periodically by the IOCLs staff only. It is only the remaining Kerosene is sold to persons who are categorized under BPL cadre. It is justified by the Govt. that BPL person is a person whose daily income is below Rs. 24/- per day in rural area he is entitled for only 4 liters of Kerosene per month per unit of 4 persons. The quantum is totally inadequate for cooking. He therefore has to purchase some other product almost by paying 4 times more or he has to resort to some other alternate source of energy. Presuming there are 42 crores of person who are categories as BPL as stated by the Govt. record the total quantum comes to 42 Crores Liters Per month i.e. 16800000 Kl or 112700000 barrel and if kerosene is directly imported at base rate of 90 / 100 dollars per Barrel; which is freely available in international market the total cost to company comes to only 112700,00,000 US dollars i.e. Rs. 58,604, 00,00,000 crores that too without any subsidy and can be sold at Rs 34.89 or 35 per liters in open market and not causing loss of 1,80 / 2.05 lac crores as claimed and recovered by PSU oil companies from the government, only as subsidy amount, the amount so claimed by PSU Oil Companies is increases 4 times the quantum of loss, this state the PSU Oil companies are inflating their losses to the extent of three to four times, so that the practice of subsidy in Oil companies should continue and to justify the losses rather than controlling their own expenses, lowing their salaries, curtailing their staff,
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and increasing their efficiency rather then begging subsidy every year from finance ministry. The fact is other way Govt. does not want that subsidy should go. Even at the international market rate the subsidy on Kerosene to BPL category + food subsidy which is introduced recently amounting to Rs. 72,000 Crores in the name of right to food is additional subsidy burden every year on Govt. coffer recovered from tax payers money in addition to hundreds and thousands of litigations which are piled up in the court due to rampant corruption / mismanagement, encouraging the wrong doing by the oil companies and its officials. It is exactly the same reason that Ministry of Petroleum has not implemented TCS Report which is set up by the Govt. itself, Parikh Committees Report and refused to disclose Chaturvedi Committees Report and practically setting up ministerial commission every year by the Parliamentary Committee diverting the attention of public to fool 121 crore Indians with the fear of losing their vote bank, except when the Govt. want to justify increase they hastily bring Kelkar committees report yes man of the Govt. However, when we compare this to the corruption in the Ministry like 2G Spectrum allocation for irregularities and losses of about 1,76,000 Crores. The coal allocation corruption is almost 1.86 lac crores, aircraft purchase losses is about 67,000 crores, allocation of block by the Petroleum Ministry and over charging by inflating petroleum blocks development with 40,000 crores and introduction of SGS marker tests 200 crores, SWG Sub-Marine contract is approx. 67 crores and 2000 crores net loss for importing rotten wheat by the agriculture ministry and increase of refitting charges for the dilapidated Russian Aircraft Carrier from free to 3.6 billion dollars, allocation of Airport Authoritys land for through away prices, irrigation scam of Rs 72,000 Crores
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Proportion of corruption in the Ministry


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alone contribute almost 20-25% of total quantum of tax payers money robbed by the politicians, bureaucrats and oil executives put together. What is left goes for foreign tour of our politicians, bureaucrats and executives some of them goes for the treatment and other for education trip with their family as seen in Karnataka despite knowing that their state is suffering with acute drought? President of India has confirmed to have visited good will visit to several countries costing 250 crores alone on Air Force Aircraft Expenses and Prime Minister of India claim to spent 1080 crores on his visit to foreign tour during his 5 years tenure. Such unproductive expenses are unheard even in very advanced countries, how the planning commission justify such expenses, bribe, extravagant of public funds without verifying the tax payers money utilization population live below poverty line after 65 years of independence. that average men can comfortably survive on Rs 19 per day and 42 crores of

Approximately 10 yrs back ITC has developed a stove called urja which cost only Rs. 800/- for the burner and its consumable are openly available for Rs. 4/- per Kg. that is equivalent to 1 liter of kerosene. The Govt. not only levied excise duty on it but also Sales Tax and other taxes and hence alternative energy have become dearer and remain out of reach of BPL and such project remains only research oriented. The intention of government is clear they do not want private sector to compete and only excuse they have is interest of poor to the extent of vote bank. They rely on Kerosene and subsidizing the same at least for election manifesto and PSU Oil Companies for their extra income employing bunch of inefficient and corrupt employees. Same was the case of Bio Diesel which was imported for Rs 24/- per liters and sold to common man for Rs. 32 Per Liters but import from
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Malaysia was halted after all the three PSU Oil companies objected to it, claiming it affect their profitability. On one hand the PSU Oil Companies are claiming losses of Rs. 10.30 per liter on sale of diesel which constitute 60% of the total hydrocarbon used, even after subsidizing Rs. 2/- per liter by the Govt. why the company should object to the import of Bio-diesel or the sale of bio-diesel by the private entrepreneur, though both are imported and required foreign exchange to purchase it. It is known to all the entrepreneur that amount of Rs. 1200 crores has been spent for setting bio-diesel infrastructure and government is giving additional amount of Rs. 500 crores to various companies like TCS etc. for alternate energy development. Beside HPCL a PSU oil company is building a huge plant at Sitamadi, Bihar for alternate energy and Himani has spent Rs 150 crors near Calcutta for huge infrastructure but due to Govt. Policy nothing is moving forward. The question is - why not import alternate energy when the crude is also imported against hard cash and save billions of dollars. Even otherwise Govt. has already approved blending of Diesel with Bio-Diesel, surprisingly Govt. on the one hand is allowing blending Diesel with Bio-diesel on the other hand is banning import of cheap bio-diesel because it affects the profitability of PSU Oil companies. This is a matter of common sense and does not required any further interpretation to understand that Govt. only want monopoly in a business with no competitor. It is pertinent to note that Govt. spent 1.80 to 2.00 lakh Crores of rupees per year for subsidizing Kerosene since last 15 years, whereas a person below BPL takes only 3 to 5 liters of kerosene p.m. for 2 units of kerosene consisting of 5 persons. Whereas the entire food subsidy to BPL is 60,000 to 75,000 crores during the year 2010-11 this is despite 4
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to 6 lacks tons of food grain which is left behind to rot due to inadequate storage is added or sold to eastern European counties as feed stock for animals lower than BPL rates though STC. It is surprising that fuel subsidy is almost 3 times more than the food subsidy. The question is it is for helping the BPL or to help survival of PSU Oil companies? There are only 3 countries in the world who offer petroleum subsidy for their masses namely Venezuela, Iran and India. In the first two countries there is abundant of oil reserves and hence they offer subsidy out of their own surplus resources but in India the subsidy is given in spite demand is more than 70% of actual production which is imported. Indian which import and depend on 70% on import costing 60 to 70 billion dollars and spend only 9% of this quantum i.e. 4 / 5 billion to subside petroleum product, which is less than the total quantum of spending on education and medical care put together by Govt. Though it is not known to common man that compare to 9% subsidy Govt. collect approximately 45% of Tax from the common man on actual sale of hydrocarbon. This is not called subsidy but price manipulation or differential price policy and competition commissioner is well aware of this irregularities. The food grains supplied to BPL category is normally meant for food grain exported for animals in the east European countries because there is no storage facility and due to shortage of storage space 20% of grain is lost and disposed off at throw away price part of which goes to BPL. The cost of loading and shipping is more the price of export at one estimate approximately 2.5 billion dollars of grain is lost due to storage inadequacy if the similar amount is spent for proper storage formers can get at least 15% extra income and periodical food gain import can be alimented altogether.
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Similarly in India normally 45% of the price of petroleum product goes to Govt. in the form of tax. The pricing is not transparent. Several myths in the petroleum product need to be broken. Kerosene is subsidized almost to 1/3rd of its original price. However, other petroleum product costs 3 times more than the actual cost they are expected to sale. This is called differential price strategy or price manipulation but never a subsidy. In petroleum product there is no subsidy because of overall profit. Government does not give anything freely. The standing committee on petroleum product clearly state:

we have to take care of the recovery of subsidy so that there is no impact on the budget and there is no drawal from exchequer
The language is used to hide meaning. You must have heard that ONGC pays out subsidy. In fact, this amount is paid out of profit by robbing the share of share holder, which in fact should go to the exploration and production, if not disbursed to the shareholders. Here, ONGC being Govt. PSU has been forced to pay less than the market value of mixed crude first i.e. almost half the international price. Thereafter, out of net profit proximately 8,000 to 10,000 crores have to be passed on to the PSU Oil marketing companies to compensate the subsidized amount claim to have been lost by the marketing company. That means the total production of ONGC and ONGC Videsh is first sold to PSU Oil Companies for much cheaper rate than the international price and then out of profit of ONGC / OIL / Cairn the 50% of the profit which otherwise should have been disbursed to the shareholders is passed on to the oil marketing companies in addition to cash / bond issued by Ministry of Finance for the survival of inefficient PSU marketing companies. So for the PSU oil marketing
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companies it is only win-win situation. Furthermore, the Oil Marketing companies also charge rent out of commission of dealer which is Rs. 13 for 1000 liters and Rs. 11 for 1000 liters of equipment they have installed at the cost of oil marketing company. So a unit consisting of 1 petrol pump and 1 tank which cost approx. Rs. 2 lakhs and sell about 1 lakh liters p.m. the oil companies deduct approx. 1% of rent from the commission of dealer, in addition to oil companies further enjoy 25% of tax rebate on depreciated value on its infrastructure which is installed on the dealers premises. But does not state single paisa rent received from the dealer in their balance sheet thereby concealing the income which is offence under Income Tax Act. Let us now compare that the expenses incurred by the Oil Company officials, leave aside irregularities which are rampant in PSU Oil Companies. The average salary of a person is 24 lakhs p.a. + benefits with Zero productivity. Let us now compare a dealers commission who is selling about 100 KL per month. His total commission comes to about Rs.72,000 i.e. approximately 1.5% of the sale price. Out of which about 1.25% is straight away passed on to the banks by way of interest. In addition to that he has to pay all taxes i.e. income tax, turnover tax, VAT on lubricant separately, Land revenue tax, NA Tax, Grampanchayat tax, labor salary, electrical charges etc. Practically, everything has to be spent out of 0.25% of income. That is also robbed either by PSU official or in transit by the transporter by stealing the petroleum product plus evaporation losses which are given to Company owned R/O but denied to private R/O. Thus the inference has to be drawn that PSU Oil marketing companies are selling impure product to the dealer which does not evaporate.

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It may be noted that PSU Oil Companies at the Depot as well as their own ROs give evaporation losses roughly 7 liters per KL but to dealers it is denied. In addition to that IOCL is stealing octroi in addition to invoicing less than the cost of same product while dispatching same product from depot, which is under investigation. Recently, after investigation it is detected that IOCL is stealing Octroi by under invoicing its product to IOCL owned outlets in city and has to pay about 2.57 crores of rupees by way of penalty to Nagpur Municipal Corporation, similarly in Aurangabad depot two of the senior most officials were kept in police remand, when they were found selling BPL kerosene on Sunday by tanker load when the depot was closed. Recently PSU officials at Chandrapur were caught taking bribe. At Aurangabad, IOCL rushed with a special aircraft with team of highly paid lawyers to ensure the welfare of their official, till now there is not a single case where any IOCL official has been subject to any disciplinary action. In contrast to R/O dealers who are not even involved in contamination is punished and based on false test unconnected with the agreement which turned up to be unproven and involved bribe of 200 crore rupees. The question is from where contamination comes from since source of BPL product is only OIL PSU companies and there are no alternate agencies involved in distribution and supply of BPL product except IOCL or other PSU Companies through their dealer and under their supervision. In recent fire at Jaipur 6 people died. The GICs surveyor was shocked to see the petroleum product mostly diesel was loaded in a tanker from the underground pipeline hidden illegally inside depot and permanently attached to primary tank of IOCL with its unauthorized outlet outside the 12 ft high compound wall after digging and permanently laying unauthorized pipe line not visible to common man, by the company itself
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and the product was regularly stolen with concurrent knowledge of IOCL staff. Now the question arises if the product is stolen with the consent of Depot Management either by laying underground pipeline or by tanker regularly. How, the loss is compensated by the PSU Oil Company? The answer is simple. It is by stealing the product of dealer. The simple way to over come this difficulty is to adulterate diesel with Kerosene in the depot itself before selling to dealer through bypass line of Kerosene tank, alternatively by supplying short product to dealer at the distribution point. All these activities and access to the restricted areas are properly fenced and can be approached by the depot staff and none else. This demonstrates illegality, contamination, theft and all other irregularities are initiated at the depot only. The shortage of Kerosene meant for BPL and can be managed by issuing invoice in favor of SKO dealer without actually selling the product to avoid detection. Hence, the allegation that dealers are involved in any illegal activity is not only erroneous but also planned to protect PSU Oil Company officials who are in habit of robbing petroleum product in the name of BPL.

It is further emphasized that IOCL and all PSU Oil company supply BPL product to Kerosene dealers which are in no way related to petrol and diesel related activities. Almost all the kerosene dealers are close relative of Ministry and Oil Companies officials. In last 30 years there is not a single person who owe BPL agencies of SKO has been terminated for indulging in any unfair practice by IOCL. Furthermore, the BPL product is quota based system which is prerogative of IOCL Officers. It is well known to Kerosene agencies who sell Kerosene in crores of rupees, if one wants to transfer its license or any SKO dealer wants to enhance the quota of kerosene he has to pay for allocating BPL kerosene to the concerned oil companys officer and to the Food & Civil supplies and
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IOCL depot staff. Under the circumstances if there is leakage in the system then how both oil companies as well as Food & Civil Supplies can be ignorant about it. It is something you are first supplying the low quality product and then testing the end product and rejecting the same claiming to be below standard. Now we should compare IOCLs financial status of its employee. A casual labor who joined 15 years ago was paid Rs. 8,39,957/- p.a. in 2007-08. A Driver with M.Com degree is paid Rs. 22 lacs p.a. A 5th std. care taker was paid 8,56,731 p.a. A Jr. Officer earns minimum 24 lacs p.a. An 8th std. 56 year old Sr. Attendant who joined corporation in 1976 gets Rs. 45,99,234 p.a. compared to President of India or the Chief Justice of Hon. Supreme Court who gets 30 lakhs p.a. Some of the Depots with only one tanker owned by IOCL hardly makes 15 trips p.m. on an average of 50 KM per day to transport the companys product. The expense per tanker per IOCL transport is about Rs 1.5 per liter compared to contractor who is paid less than 20 paise per liter. A dealer who spends 25 to 50 lakhs out of his pocket for the dealership hardly gets equivalent to 1/3 rd of Class IV employee on its investment as income after working 365 days a year 24 x 7. There is hardly any one among the PSU Oil company officials is having courage to tell IV employee or SC category why he / she is not performing his duty in IOCL but to the dealer the company deal as such he / she is slave. This is how a huge profit making PSU OIL Co. is managed out of common mens misery. In addition to this, Sr. most Oil Company Executives are beneficiary of proportionate share from international purchase of crude oil which is between 3-4 dollars above international market rates and divided among the top management. The Oil Ministry is
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also beneficiary at the time of allocation of dealership through their agents. The said deposition is confirmed by the Apex Court wherein the Ministers are involved passing the right of dealership for favor and CAG has confirmed that the DHC have been involved in over invoicing RIL expenses on recoverable exploration cost, by increasing cost of development from 2.8 billion to 8.6 billion US dollars. Recently the minister who refused to enhance the gas price of private player was shown the door as such he also imposed huge fine for non-performance of his contractual obligation to the private contractor who run the country. All this comes at the cost of common man and recovered through taxes and higher prices by Govt. in monopoly business. This culture is passed on to the junior level in hierarchy and ultimately they have only one source that is common man through the dealer who has no alternative except the monopoly of PSU Oil company nor there is any choice to change over from one PSU Oil company to another since all the three companies work in cartel. If Govt. wants to practice such unhealthy competition for stealing crores of rupees which belongs to common man, if govt. desires to continue this practice, what is the need of competition commission or Transparency Commission? The above practiced by IOCL / PSU Oil marketing company prove that there is systematic bribing and harassment by the Jr. most officers to the dealer if he does not bow to the impugned demand of PSU oil companys appointed sales officer and blaming the dealer with false allegation who does not co-operate as seen in SGS Marker Test allocation contract to the close relative of petroleum Minister. The test turned up to unproven after swallowing approx. 200 crores and terminating 113 outlets almost all of them except 28 outlets are belonging to IOCL alone which is least selling petroleum marketing companies of 3 PSUs.
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The policy of Govt. pertaining to pricing vis-a-vis subsidy starting with sudden raise in crude synchronized with weakening of Indian rupee several fold. The Govt. further add customs duty @ Rs. 2500/- PMT, Sales tax ranging from 28 to 32%, excise, education cess, port charges and service charges on refined petroleum attract sales tax @ 30%, 7.5% customs duty, central excise, Central Sales tax, Education cess and other. These cesses collected since 1991-92 out of which Rs. 84,337 crores was meant for Oil Industry Development Board OIDB, though only Rs 902 crores have been given to OIDB which is not even sufficient for administrative purpose for paying the wages, forget about development. This show that the deregulation will push price down as it can impact on the part of cost. It is the only oil companies that luxuriate on high petroleum cost. IOCLs net profit is Rs. 10,220 crores i.e. (4.11% on Rs. 2,49,271 crores), HPCL 1301 Crores ( 1.2% on Rs. 1,07,637 crores) and BPCL 1837 crores ( 1.5% on Rs. 1,22,275 crores). Their total profit being recovered about Rs. 32,735 crores in 2009-10 including profit of upstream oil companies like ONGC, OIL and 30% of crude from Cairns Rajasthan oil field even after subsiding crores of rupees to OMC i.e. approximately 50%, in favor of down steam Oil companies, which in fact should have gone for exploration and production if not paid to the shareholders and not to the inefficient PSU Oil employees. It is clear from the sale volume that IOCL could have made at least 5 times more profit but have not because they spent on themselves lavishly. Their salaries are scandalous. This demonstrates how the huge profit of your money is spent or robbed by PSU Oil Companies. Another myth is a concept of under recovery. The cost of domestic crude is equated to imported crude when this is not fully recovered from the consumer due to administered price. The difference between cost of
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Indian production from oil field sold in subsidized rate and the cost of imported is called under recovery. This applies to refinery cost (outdated Russian Refinery) freight and delivery charges. The refinery cost of IOCL is based on 90 dollars per barrel with return of only 3 dollars on refining of product compared to the profit of 14 dollars by Reliance Petroleum and 12.9 dollars by Essar Oil. Both are private companies. This is totally notional and unreal amount shown as loss. Further the charges are increased when the finish product is transported from one state of another by charging entry tax by state, octroi by the local bodies and sales tax on finish product by state, under the circumstances why local depot should not wash their hand in flowing Ganges, though how dirty it may be, the depot charges approximately 1.50 Rs per liters for storage facility compared to only 020 per liters for transport charges, under this circumstances how the lowly paid driver or contractor will survive except sealing the product. This is why the PSU Oil Companies and Ministry have not made Chaturvedi Committee public. There is another dark area. While drilling oil and gas springs out freely. The crude refinery produces LPG (except condensate which is also known as LPG and derived from Christmas tree i.e. heavy condenser through surge vessels), petrol, diesel, naphtha, kerosene and aviation fuel and low diesel oil. Then finally the furnace oil, lubricant oil, bitumen, petroleum coke, paraffin wax and other waxes. The total refinery cost added to each petroleum product arbitrarily or its proportionate profit to each derivative has never been explored. What is needed is total nongovernmental controlled committees like TCS, Parikh committees together with technical persons not involved with PSU Oil companies to analyze thoroughly and come with honest and transparent policy rather than stealing the national resources in the name of BPL subsidy and
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harassing the dealer for pity bribe and passing miseries to the common man. The Govt. of India at the time of nationalization of oil industries have assured in parliament to be fully transparent and beneficial to common man. In fact only few neo-rich have become multi billionaires out of Govt. policies. Our confirmed reserve of petroleum products like KG Basin, Mahanadi basin and Barmed fields are sold first by declaring the area as non productive by the ministry and resold to private players by attaching arbitrary conditions like in case of Cairn India where entire royalty was to be paid by ONGC and subsequent governments backed out its written agreement lying before the Apex Court that it was cost recoverable. The question arose how it is possible that essential expenditure which is paid to the Govt. in the form of royalty on movable goods (viz. petroleum products) sold can be justified as cost recoverable. When it comes to Govt. unless their hands are greased a small lacuna in the procedure, the Govt. makes all its efforts to demonstrate entire wrong doing in their favor, taking shelter of court knowing well most of judges sitting on dais are nothing but the de-facto agent of the Govt. In similar case in one of the oil company in KG Basin the cost of development which is recoverable has been increased from 2.8 billion dollars to 8.6 billion dollars i.e. approximately 4 times. This money ultimately has to be recovered by Govt. through the consumer and passed on to the private players. Such thing would not be possible without the help of bureaucrats, oil executives and ministers. In another instance a well head refinery in Barmer field suggested by ONGC has been denied when the price of petroleum was touching 142 dollars per barrel, the Cairn India was directed to slow down their exploration and production. This shows malafide intention on the part of Government.
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The Cairn India was further forced to lay costly pipeline to transport the crude to Jamnagar to help private players at discounted rate of 50% thereby creating a multinational a conducive atmosphere to sale most profitable field to the private players and say good bye to India for ever after 32 yrs of hard work. The entire exercise by the Govt. was premeditated to help the private player. The Petroleum Minister came under scam when the matter was raised by the opposition. He was substituted with another Petroleum Minister who first ordered CAG to re-audit the expenses of business house. The audit of account by CAG was strongly opposed by the business house claiming that private player do not fall under purview of CAG and Govt. agreed to the auditing by the business house himself. The minister refused to approve further development cost and for not performing contractual obligation the Petroleum Minister fined the business house amounting to Rs. 7000 crores and further did not allow parting his shareholding with the British Petroleum Company. At this juncture, the Prime Minister Pyare Mohan was summoned by the high command and he has ordered to shunt the petroleum minister. It seems the Govt. is running this country through the business houses and not by the elected members. All this prove that Ministry and PSU Oil Companies are Pandora of corruption and OMC deserved to be deregularized. This type of policy also demonstrates that on one hand the Govt. is begging Foreign Investor to invest in India but on the other hand they are least interested in the development, unless bureaucrats are first greased, re-greased again and again - nothing moved forward. .o. Gas Necessity, Politics and Corruption:

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Few years back Iran offered India via Pakistan CNG @ $ 3.25 mmc3. At one stage India was to pay only price of Gas. The route was through Baluchistan but after exhausting the sea route survey for lying under sea pipes line direct from Iran to India, which turn up to be not viable, India rejected the offer on the ground of instability in Pakistan. The Pakistan despite the Yes man of USA and restriction on several compressors to be supplied for use for pumping the CNG to Iran decided to go ahead with the project in the interest of fuel necessity. The Ministry of Petroleum was not interested in the deal. The reason was very simple. It was to protect the interest of 2 private players and one PSU Oil exploration Company, which was supplying the same very gas @ $ 4.35 to 5.6 mmc3 i.e. 1.10 to 2.5 dollar more than Iranian gas through GSPL / Gail pipeline. The monetary loss to the exploration company means marketing losses to Ministry and loss of tax revenue + restricting foreigner even though you pay 2 fold to the domestic player. The equation was simple, protection policy of some business houses and PSU was only to protect the interest of few at the cost of many. It is revealed that govt. has now agreed to enhance the price of CNG to 8.5 M3/ dollars. Furthermore, India has agreed to purchase gas from Turkmenistan from its TAPI reservoir it will be supplied through Kandahar and Quetta which is strong hold of Taliban. The pipeline will pass through Multan, the strong hold of LeT and will end at Fazilka in Punjab (India) and India will pay amount of US $ 13 mmc3. The expected cost likely to be 13 $ mm-btu that include transportation, transit etc. which is about 3 times the 4.20 mm-btu paid to ONGC and RIL. We should compare the risk factor. The 56 dia pipeline passing through most volatile region of Afghanistan and Pakistan is likely to help only Pakistan as such Gas supplies to India will be frequently halted at the whims of terrorists by blowing up the pipe
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line thereby blackmailing India as and when they demand big sum or some captured terrorist to be returned. In recent incident Reliance Industries was allowed to increase the natural gas price to 4.2 $ mmc3 from 1.65 $ mmc3 which was quoted by the international tender being lowest bidder several years back after dispute between both the brothers. We should now go through the merit and demerit of the case which is decided by the Apex Court justifying enhancement as the field belongs to Govt. The private players in this case hand in glove with bureaucrats increased price of development by almost 4 times and Govt. has further increase the price almost by 3 times. The contract clause clearly state the amount so spent is cost recoverable. That means by increasing the cost, the contractor which has inflated the cost artificially i.e. the cost of development by 4 times has been compensated by the Govt. by allowing increase in the cost of CNG to be recovered from consumers though the spending is artificially increased many fold and then recovering of this cost through the consumers, with consent and cooperation of Oil Ministry. The intention is simple, for the Govt. the consumer is only source the Govt. can blackmail at whims with the support of our judiciary. In simple term by increasing hike of gas the contractor is compensated its artificial hike, govt. has been justified hike in the royalty and overall more revenue to the govt. both due to hike in royalty, proportional increase in the tax and all this is justified by our Hon. Court without going to merit of international tender on the basis of which the private contractor was awarded E &P Contract AND who will pay for hike the common man. Several years back India allowed international company to build LNG facility and same is practically lying idle because the cost of imported
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LNG has escalated to 10.50 mm-btu. The said gas is available in plenty and can be supplied through the same pipeline of GAIL to any part of Punjab and Kashmir by extending few KM pipeline with the domestic resources. The cost at Fazilka for same LNG in most purified form will be about $ 11.5 mm-btu which include transit charges etc saving amount of US $ 2 dollars per unit with assured supply within 2 years. However if TAPI proposal of pipe line through Pakistan is accepted the flow of gas will not start before 2018 but the Govt. mostly Ministry of Petroleum will go ahead with the risk of much costly proposal by the Americans to please Pakistan at the cost of India. In similar way, the LPG used for domestic purpose and industrial purpose had 2 tier pricing system. The price for BPL and domestic gas has been almost half vis--vis commercial / industrial gas cylinders. It is very simple for LPG dealer to casket the domestic gas into industrial cylinders. The quantum of domestic gas consumed is 70% of the total consumption compared to only 30% LPG for the industrial / commercial purpose. If the Govt. would have standardized both domestic and industrial gas with flat rate probably the Govt. would have earned with the much better revenue without giving any subsidy. This demonstrates motive of Government, in fact the MnoPG has always kept 2 tier system be it Oil or Gas to ensure the one out of two is benefitted and the one who benefitted at the cost of many due to the government policy is always close to the system. Few years back Govt. invited international bids for LNG / CNG. The LNG is liquefied Natural Gas which is compressed under extreme low temperature. The object of inviting international tender was that till such time the contractors RIL exploit proven gas field of KG and Mahanadi
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where the national reserves confirmed to have been existed alternate arrangement will help the energy need of fertilizer plant and NTPC and reduce the quantum of Naphtha which cost many fold to be used by these companies and it was heavily subsidized. The Government will sale the gas to fertilizer units and NTPC at a fixed rate for 30 years. The contract was valid for 30 years. Out of 3 players, one of local contractor RIL was allocated the contract because it was fixed @ 1.65 $ mmc3. The 2nd contractor was Ras Oil Co. of Qatar who quoted 2.60 $ mmc3 and 3rd was Iranian Oil Company which quoted 3.20 $ mmc3.. However, part of the contract was awarded by late Shri Raha, the then ONGC Chairman to Ras Gas, justifying that private contractor RIL will take several more years to supply natural gas from its field since they have not even started exploration of field allotted to them and since the gas was urgently required by fertilizer plant and NTPC under contract and because RIL has not even started E & P activities the part contract was agreed to be awarded to the Ras Gas of Qatar. The said contract is still valid and M/s. Ras Gas is supplying even today contractual quantity of LNG at losses though the international price of LNG has increased to above 10.5 $ mmc3, but the contract is still honored with the old rates but the local player is allowed to increasing the cost of CNG which is cheaper by 3 times to 4.2 dollars per mmc3 and it is likely to be increased further to 8.5 dollar in order to compensate losses of the business houses and this is up held by both the Ministry as well as Hon. Apex Court without foregoing the contractual obligation, wherein price was contracted for 1.65 $ mmc3 and based on this price NTPC, opted for RAS gas and Reliance Power have been allocated land in UP, for setting up gas based power plant though there was neither a cost escalation of gas, since CNG was produced from national reservoir and meant for the national cause but ministry was more generous to help the private player. The object of
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supplying cheap energy has been set aside in favor of RIL justifying the increase in price in international market and UP plant has been cancelled. All this demonstrate that entire exercise was for giving special benefit to the private players, more particularly to one business house who is main source of funding to the party in power. The attention of readers is invited as to why LNG cost more than CNG? because unless CNG is compressed below (-) 161 Fahrenheit and low temperature is maintained after separating H2S and SO2 plus water residues it costs at least 1 US dollar more in compare to CNG. The CNG cannot be kept in liquefied form and that is why it is called LNG. LNG stands for liquefied Natural Gas compressing CNG and converting to LNG is very complex and hazardous operation and cost at least 1 dollar per mmc3 more than the CNG. Whereas in natural gas i.e. CNG the flow of gas from X-mass tree through surge vessels is kept at its own pressure and it does not require even compressor / pump to be used for pumping the gas to delivery point up to certain distance. The only process required is reduction in pressure, draining residual water, releasing contaminated gases like So2 and H2S and the gas is released without any compression at a very high pressure through high pressure pipes. This states that Govt. more particularly, the Ministry of Petroleum is willing to justify all wrong doing for their convenience and not for the national cause when the special favor is to be given to business houses. Recently both private players i.e. RIL and Cairn have been awarded extended area for drilling without following due process of law or without any international bid and DHC has been arrested based on the CAGs audit report for approving very high inflated cost for RIL KG-6 field development, how about the ministrys involvement they were not estopped form the re-auditing through private agencies before approving cost escalation
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ultimately
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they will have to approve the report of

DHC

it is only after

reconfirmation from independent auditors recommendation they were within their right not to approve the escalation and this was the job of Ministry. The cost escalation of Rs 40,000 crores to RIL to be recovered from common man would not have been free of cost. o..

LPG MOCKERY OF GOVT. POLICY FOR DOMESTIC LPG

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The Govt. has recently announced subsidized 14.6 Kg LPG Cylinders for 425 & odd rupees for the common man but limiting number of refills to 6. Rest has to be purchased with non-subsidized rate of Rs. 950 + rupees. Simultaneously, with recent elevation of Prime Minister in waiting Shri Rahul Gandhi to Vice President of Congress Party, the Govt. has given ex-gratia on tax payers money by increasing a quota of LPG domestic gas refills on subsidized rate from 6 to 9 numbers. This is pre-meditated plan, after cash for subsidy through Aadhar Card and usual announcement of each ruling party either in power or set to be in power. The number of LPG Refills before election for domestic use on subsidized rate will further increase to 12 by 2014.The first announcement to this effect has been announced by Congress lead Delhi Government. Basically it is the similar election manifesto earlier practiced by the Govt. on Kerosene subsidy and usual formula as used by the parties wanting to be in power. More such incentives are likely to be followed based on similar subsidy in the name of poor before the general election by increasing price of other commodities like rail fare, electricity tariff, coal and Petroleum product etc. The impact of railway fare has already started. The result will be more inflation and weakening of rupee vis--vis hard currency. In simple word, half the bread earned by a common man will be reduced to quarter or probably even less. The direct impact will be on middle class. Similar story is likely to be repeated with the diesel. The prices for bulk consumer have already raised to Rs. 11 i.e hike of straightway 20%.
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Though for retailers price will continue to be on increased in phased manner with 50 paise or so per liter, the ultimate sufferer will be common men or middle class society and Govt. will keep on playing vote bank politics. Neither a common man nor a country can be benefited in any way. x

SHALE GAS:

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The shale gas is pocket of Mineral Gas (CNG) under the deep surface of the earth, it is not in a huge field and contain lesser quantity than the natural gas field. In simple term you may call it pocket gas in several pockets of the earth, which require frequent drilling or continuous drilling and located in specific topographical area. The USA which was suffering with shortage of gas has been very successful in shale gas exploration and production, as many as 16-17 companies are involved in exploration and marketing of shale gas, the major beneficiaries are small and medium power plants. The Indian Company RIL has spent approx. 1 billion dollar for exploration for several assets in USA in partnership with US based company knowing well that there are 20 and add confirmed blocks in India itself which are capable of catering the need of power plants to substitute shortage of CNG. This demonstrate how the Indian multinational with active co-operation of Ministry of Petroleum can divert the fund which are derived from the (public) Indian shareholder hand in gloves with the Govt. officials and ignore the need of energy in India. Presently shell gas in India is drilled only in one place by ONGC i.e. in Icchapur, West Bengal. ONGC has created a exploration landmark when the gas flew out from the barren measure shale at the depth of around 1700 meters in its first R&D well RN SG-1 near Durgapur at Icchapur, West Bengal on 25th January, 2011. It was drilled down the depth of 2000 meters. The barren measure Shale which is main target was encountered from 895 to 1849 meters for presence of gas traces. The Shale gas is one of the pre-dominant unconventional natural gas and major source of on-land gas. In USA Shale gas contribute 17% of total gas production and will contribute 49% of the energy need by 2020. In
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India, as per the initial studies many shale sequences in well explored basins are found to be promising like Damodar, Combay, Krishna Godavari and Kaveri basin. Potentially, these basins are also vetted by international experts. In Damodar valley where ONGC already has its presence for CBM was prioritized for R & D exploration in Shale Gas in view of shallow nature of Shale formation and abundant water availability which is pre-requisite for doing massive hydro fracturing. Similarly, there are shell gas blocks in Himachal, Uttarakhand, Madhya Pradesh and Vindhyachal plain, despite most of the blocks are sold to the private players by the ministry of P&NG except the ONGC non has started any drilling activities but Govt. is least bothered to explore the same through private players by giving any special package. There are some small villages in MP where the entire villages cook food from the cracking zone which is burning for years together. They are such a vast field either consisting of shale gas or reservoir of CNG but not a single person from Ministry of Petroleum has visited or did anything to explore the same. The Vindyachal belt is known to have huge gas reserves which are yet to be surveyed. The R & D project which involve drilling of 4 R&D wells in Damodar basin, 2 wells in Raniganj sub-basin in West Bengal and 2 wells in North Karanpura sub-basin in Jharkhand was contracted to Schlumberger who were given a integrated contract for drilling , assigning and carrying out the drilling operation including hydro fracturing in view of their expertise in US. The successful R&D Pilot testing of first ever Shale Gas on the surface will put India on Shale Gas map of the world. It has opened up new hopes for meeting our energy needs and energy to venture in many Shale
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sequences in well explored, Combay, KG, Kaveri and Assam Arakan basin for exploration of Shale Gas in Indian sub-continent. India as per the recent estimate have confirmed reserves of 527 trillion cubic ft of shale gas of which 50% or 260 TCF are recoverable. The amount of fuel could last for 200 years and would potentially be the 5th largest reservoir shale gas in the world, the 1st being US followed by Argentina. With Govt. policy work on shale gas exploration expected in next 24 months and even industrys keenness to get exploration of clean non-conventional energy that seems to be less expensive further no processing is necessary- India can look forward to commercial production of shale gas latest by 2017 if the Govt. bureaucrats allow technocrat to work without their interferences. The shale gas is being increasingly tapped across the world as conventional energy like coal and oil which is scarce and expensive and will exhaust within 80 years or so. The USA has been recovering shale gas for several years from its reserves since 2009 and 61 TCF of confirmed reserve blocks were in advance stage of development by 2011, the reserve increased to 827 TCF and the shale gas production is projected to increase from 25% of total US gas production in 2010 to 49% by 2035. The Shale gas usage reduced the cost of gas in US many fold. China is among the few countries that are looking at shale gas as source of energy. With 50% of recoverable reserve shale gas gives a very good option for long and dependent fuel in the Indian market. Under the 12th plan India is looking to work in Cambay basin, Assam Arakan basin, KG basin and Damodar Valley basin. The problem in India that Shale
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Gas reserves are mostly found about 2000 meters deep on the shore, mostly the area of human habitation and especially designed water bore wells may be needed in such area to tackle the escaping methane gas. The use of high power compressors and other equipments could also unsettle local population; the shale drilling could also affect ground water reserve. However, knowing well that most of the shale blocks are in densely populated area, if properly tapped and stored the shale gas could be one of the viable propositions to replace LPG for entire urban population of India for the domestic fuel, if distributed through local pipeline network. At one estimate the present reserve of shale are sufficient to cater the fuel requirement of kitchens in India for next 200 years. The estimated expenditure involved will be between 10 to 15 billion dollars and can take care of entire subsidy which Govt. claim to have been giving on fuel to the densely populated urban area without spending a penny on import. There is an immediate need for us to tap the shale. Conventional sources are either expensive or drying up. After Bombay High, there is no big discovery on the conventional front. Even the reserves in D6 are proving to be uncertain or the multinational E & P companies are bent upon blackmailing the nation. In another development ONGC has signed MOU with Conoco Philips, the major player in non-conventional resources for technical evaluation of shale gas, which is also known as gas trapped in the rocks but failed to escape. The gas permeates to the each crust. Such trapped gases involve excessive exploration over large tracks of land and require huge amount of water. This gas reserve is having a self life of more than 25 years. Unfortunately, the reserves were known to Indians long back but India
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lacks ION Technology to extract it. US is the only country who is having a technology know-how for exploration and production. On its visit to China, Chinese were quick to sign MOU with American president for shale gas exploration and production whereas Indians are still doing their preliminary work. So far Indias efforts during the last 25 years to build pipeline to bring natural gas from Oman, Iran, Turkmenistan, Bangladesh and Burma has failed and it remain pipe dreams. However, the existing reserve of shale gas has been ignored. It is only since last 10 years the dependence of gas imported from Canada and elsewhere has increased in USA. The wisdom of technocrat has taken over exploration of shale gas in US. In short, US has replaced LNG imports which is practically reduced and US supply has changed from deficit to surplus with shale gas. The shale gas deposits in India are also found across the Gangetic plane, the Assam, Rajasthan and Jammu & Kashmir in addition to many coastal areas but neither Govt. nor any independent entrepreneur has carried out any exploration or estimation. The estimate we have is by the foreign company and could be wrong or speculative. The shale gas is typically a dry gas primarily composed of methane. Three factors are contributed to its rapid development of US gas shale i.e. advances horizontal drilling, advances hydraulic fracturing and most importantly rapid increase in natural gas process, in the last several years as a result of significant supply and demand pressure. The difference between shale gas development and conventional gas development for
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CNG are extensive use of horizontal drilling and high volume hydraulic fracturing. The horizontal drilling does not cause any environmental problems while the conventional gas resources like gas shale reserves are plentiful. The cost of produce is more than conventional gas. The production of shale gas cost has estimated to be between 6 to 9 $ per mm btu. The increase in demand, more particularly in Europe has diverted the shale gas prospects as a result European has invested heavily thereby reducing dependence on Russian pipe gas. India can produce more gas and can reduce their coal import which is environmental unfriendly. Unfortunately, Govt. has not been able to implement right kind of gas policies even after recommendation by several commissions. It is because of excessive Govt. control. In India, we have 3 kinds of gas price: 1. Gas price based on administrative price mechanism (APM) and for this gas reserve before new exploration and licensing policy which is around 2.5 $ per mm btu. 2. Import price paid to LNG import which depend on contractual obligation and international price which are as high as 10 $ per mm btu. However, contractual obligation with Ras Gas is still 2.65 per mm btu.

3. The so called arm length policy based on market for those gas
reserve discovery from NELP for Krishna Godavari basin, the Govt. has fixed the price at the level of 2.25 $ per mm btu but increased it to 4.20 $ per mm btu. It is likely to be shot up to 14.50 $ per mm btu hand in glove by Govt. and private player, very shortly.
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The basic requirement of proper gas sector development in India is that let market decide the price of gas rather than the Govt. The Government encourages public and private sector by allotting several new blocks without signing transfer of technology. However, the national assets are grossly misused by the private players and incentives are swallowed by few with close co-operation of Govt. bureaucrats / babus. The Govt. should consider setting up a shale gas commission consist of only technocrats to make effort to develop shale gas fields and infrastructure on war footing, for shale gas reserve in India in shortest time. o

Why the Petroleum Product does not attract provision of Competition Commission:

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The Govt. of India nationalized 2 Oil Companies i.e. Shell & Esso way back 39 years ago i.e. somewhere in 1970-71, with an assurance in both the houses of parliament for providing cheap fuel/energy to the public at large. Simultaneously, Govt. infused amount of Rs. 11 Crores in IOCL claiming that 2 companies will not be sufficient to cater the object of providing cheap oil to public and keeping 3 Oil marketing companies under the direct control of Govt. had one of the preliminary object of applying competition norms through MRTP among themselves. However, the Govt. while nationalizing the two companies have completely wiped off competition between Oil companies, subsequently remaining oil marketing companies like Caltex and IBP were also either nationalized or merged with PSU Oil companies in addition to taking total control of private Oil refineries by these marketing oil companies at through way prices and allowed them to act in cartelization and monopoly at their whims in a totally dictatorial manner making their own rule by passing even the judicial norms contrary to the undertaking in both houses of parliament and further confirming that IOCL will never be denationalized, thereby introducing a greatest inefficiency any PSU company has ever seen. Say for example a driver of the company whose take home salary is between 40,000 to 50,000 p.m. hardly undertake 700 KM P.M. for actual transportation. If you combine all the resources spent on him like sick leave, casual leave, medical leave, LTC, productivity bonus and pension benefit etc. it costs about Rs. 1.50 to 2 per liter for fuel transportation within the peripheral radius of 30 KM in comparison to 20 paise given to private contractor. This demonstrates how oil companies are using their resources for the welfare of public at large and surviving on tax payers dole through government control. All the 3 companies became national asset which were grossly misused by politicians, bureaucrats and senior executives with rampant corruption
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together with junior level employees. Though 3 companies have become billion dollar industries claimed to be not only Navratna but also among the first 500 richest companies in the world though surviving on Govt. dole and standing before the finance ministry with bowl in hand every year justifying losses due to subsidy and not inefficiency, the losses which are recovered from tax payers money by fooling 121 crores Indian. The Govt. of India justifying restriction of petroleum trade based on 2 major factors through 3 PSU oil Companies. One is to subsidize the BPL product ensuring that 42 crores people listed earning below Rs. 26/- per day after 65 years of independent should be provided with cheap fuel for their cooking as well as lighting need, though the BPL card holders are only 6.5 million. With the introduction of Adhar scheme, this practice is now substituted with cash subsidy, so there is no justification for further subsidy nor there is justification to keep PSU oil Companies within the ambit of Government shelter. They must be denationalized immediately. Presuming the total loss of 75 billion $ since last 15 years if oil companies are denationalized at the ratio of 3:1:1 i.e. 3 billion $ for IOCL and 1 billion $ each for BPCL & HPCL. It will take 15 long years for the Govt. to recover what they have spent on oil companies to maintained inefficient oil marketing companies and subsidizing petroleum product in the name of BPL. The immediate remedy with the Govt. shall be denationalization of oil companies to the extent of 51% thereafter refund the losses from the profit derived from 49%, and simultaneously denationalized in phase manner in favor of public limited companies under the management of private player. Even at the rough estimate of present market value which is fluctuating at Rs.
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275 to 350 per share, the total quantum of money Govt. expect after denationalization the quantum of recovery shall not be more than 10 billion $ for 3 companies put together. Another object is to provide clean fuel which is claimed as non-polluted. The word non-polluted means finished product of refinery which emits less sulfur or sulfur derivative (which is also known as meta-corpus). Almost all the Indian refineries owned by IOCL are outdated Russian design which involved huge amount of money for modification in order to be compatible with the international standard. The IOCL which runs the refinery at Mathura in a matter of pollutant discharge by the refinery causing damage to Taj Mahal and the removal of 15 year old vehicles from the roads of Delhi before the Asian Games has stated its inability to convert their outdated refineries, more particularly, Mathura Refinery giving reason that approx. 25000 crores of rupees were needed for modification, the said amount was not within the available resources of IOCL. This deposition was made by IOCL before the Apex Court in a petition filed by the Citizen Forum as well as Transport Ministry in order to save Taj Mahal as well as justifying removal of outdated vehicles with self life of more than 15 years of age and resulted in removal of 15 years old vehicles from capital and were not allowed to run in the city of Delhi since it was a major cause of pollution in the city of Delhi. Even after the said deposition that Euro standard of Mathura Refinery is not achievable due to design problem as well as huge money involved. The Apex Court has allowed the 15 years old vehicles to be banned taking away the livelihood of thousands of Hindu migrants who were managing livelihood by transporting and ferrying the common man for

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short distance routes in Delhi after they were uprooted from their home land after partition. Similarly in Mumbai when the Citizen Forum for clean air filed a similar petition the IOCL has sworn an Affidavit before the Bench of Justice Ranjana Desai and Justice N. Sabarwal (the then Chief Justice of Maharashtra) that the refinery product of IOCL is Euro Compatible and met with the international standard. Both the depositions were made simultaneously one lying before the Hon. Court for the advantage of marketing sub-standard petroleum product and another before the Apex Court for introducing CNG. The CNG Kit which was imported and sold almost 8 to 10 times above the import price under license through only 3 companies and involve several crores Rs of bribe by no less than the transport minister of Delhi would not have been free of cost without the involvement of ministry, minister, bureaucrats, and oil company official. In reality the Govt. itself is major beneficiary in the name of providing subsidy as such the subsidy itself is compensated by increasing the cost of other petroleum product i.e. total price 46% of finished product is passed on to the Govt. in the form of taxes which is equivalent to 27 billion $ and Govt. claims to dole 4 to 5 billion as Kerosene & LPG subsidy. This shows that entire Govt. is running with the revenue generated out of petroleum product and this practice will never be decontrolled, being administrative necessity and political manifesto for seeking election / re-election. On the top level both Ministry and Ministers make hefty profit for themselves by allotting and selling reserved blocks to few industrialists for E&P through systematic bribe and cartelization and if the crude is purchased from Arabian countries, Africa or Iranian oil company, the inflated bills are made through fake
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companies at Singapore or Hong Kong by billing the invoice several folds by over invoicing. The Govt. of India is shy to enter a long term contract for Govt. to Govt. contract because such practice will lead to taking away benefit and personal gain to ministers and bureaucrats. Ministers seem to have been using this portfolio only for personal gain. It is subject matter of record that Iranian Oil Company way back in 1970 offered to supply crude at the fixed rate 2.75 $ a barrel for a period of 30 years, the proposal was rejected by the Govt. despite both the oil companies i.e. Shell & ESSO eagerly wanted to entered in to 30 years contractual obligation. After Gulf War in 1971-72 these companies were nationalized. The price of Crude steadily increased to 42 $ per barrel after war with Israel and other Arab countries in the year 1973 and hence a very purpose of oil companys nationalization was defeated. At one time this country did not have even foreign exchange reserves for purchase of crude and since no country was willing to extend credit due to Govt. policy, at this juncture gold reserves were mortgaged with Swiss Bank to pay out standings. With the exit of foreign oil companies it was Govt. of Indias monopoly to fix the price. In due course of time oil prices were dropped from 42 to 9 $ per barrel. However, the price of petroleum products in India was never dropped, thereafter because the Govt. became a man-eater robbing common man to the maximum extent taking advantage of fluctuation of black gold. It is further emphasized that by nationalization, the major beneficiaries are politicians, bureaucrats and executives. For example, by allocation of new fields for E&P, politicians are paid very hefty amount to suit the
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contractor indulging in E&P activities as such the cost of field development is recoverable from the proceeds of sale of oil and gas which will be pumped after the exploration is completed and production began. It is like a life long pension for the contractor since the cost is inflated in the first place several fold. In case of bureaucrats, they are beneficiary because of allocation of blocks cannot be allotted unless they scrutinize and approve it though they are technically incompetent. So, politicians and bureaucrats hand in glove are continuously benefited from each contract. Both contractors and suppliers are quick to enhance the cost which is recoverable and this does not come free of cost. The other benefits are purchase of import crude which is normally 3 to 4 $ per barrel more than the international price. It is well known that if the crude is supplied from Middle East or the Nigeria. It is billed at Singapore, Hongkong or at the Dubai and not at delivery point. The inflated bill is divided between politicians, bureaucrats and oil purchasing committee in equal parts. There are agents sitting in Amsterdam who are brokers of oil companies and also procure / supply crude. Almost all brokers are billionaires and willing to inflate the bill and manipulate the record at will subject to instructions given by Petroleum Secretary who normally act as intermediatary in all deals. It is well known that for every transshipment of crude supply to PSU Refineries, one dollar per barrel is routed to the Govt. in power as party fund, which ever government it may be and the crude import is one of the major factors of the funding the party in power. This is probably shared between party and minister of petroleum. At middle level the executives make hefty profit for recommending the allocation of Retail Outlet for favors and work as agent for dealership to be allotted. There are fixed rates for allocation of bulk gas connections to the dealers. It is well known in oil circle that DM of the company charge Rs. 200/- per connection from the dealer for allocation of no of new gas
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connection to be allotted to the dealer and rate for dealership for petrol pump, gas agency and Kerosene dealership are almost fixed. For example, if a dealer is allotted 10,000 new gas connections for domestic purpose, he should be prepared to pay 20 lakh rupees to the Divisional Manager who is authorized for allocation and any Kerosene dealer wants extra product to be allocated, it is discretionary on the part of Divisional Manager to allot additional tanker load of Kerosene for the payment of Rs. 10,000/- to 20,000/- per tanker. This makes a servant of the company a man eater and in due course of time they start exploiting the dealer the way they like and who do not co-operate with them or those object to their wrong doing are victimized. Similar story is repeated whenever there is shortage of petrol and diesel. Unless you pay you will never be allotted required amount of petroleum product which normally happens at the time of extreme shortage at the direction of Sr. Divisional Manager, who conspired to play the entire drama through their sales officers. In Satish Sharmas case the minister was penalized by Apex Court for taking bribe for allotting dealership after accepting 35 lacs for each dealership offered. During Ram Naiks tenure, BJP allocated thousands of ROs, SKO agencies / LPG dealership to the people who were close to party and his family. However, Hon. Court always remained extremely generous to politicians. The then Foreign Minister Natwar Singh made huge corpus by selling crude coupon in the name of Gandhi dynasty received from Iraqi President and making fortune which was revealed from documents recovered by the Americans after the Iraqi President Saddam Hussain was removed from the power. Even though Govt. proposes total privatization of two companies BPCL & HPCL, the employees rushed to Hon. Supreme Court and demanded
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that Govt. cannot revoke the object clause which had a sanction of Parliament and the Hon. Court was forced to agree in favor of employee, since ruling party did not have total majority in the house. Recently similar scam was revealed against Shri Murli Deora the

Petroleum Minister and DHC for favoring RIL by allocating prospective license for additional field and sanctioning the cost of development which was inflated many times and further increasing the price of natural gas and passing Rs 200 crores contract to his close relative pertaining to unproven marker test violating all the norms to a Company owned by his close relative called SGS Pvt. Ltd, which will never be investigated by CVC in his life time and the truth cannot be revealed because of restriction imposed to favor the politician and bureaucrats due to shelter given to them under the protection of Section 8 (1)(h) of RTI Act 2005. Incidentally, 2 CVC Chiefs who were investigating or who have been investigated the matter have been declared as not eligible for very post and were removed from the office of CVC as such they did not fulfill the eligibility for the post of CVC. The whole idea of investigating corruption pertaining to SGS Pvt. Ltd. (AUTHENTIX, UK) is prejudged and Govt. always had upper hand when it comes of wrong doing by govt. servants as such judiciary is not only impotent, notoriously slow and grossly inefficient but loyal to the Govt. It is the judiciary in this country never goes against the Govt. It is normally meant for common man. JRD Tata the Chairman of the Tata Group openly said that rules are for the common man only. Though practice of privatization of retailing the petroleum product was authorized by awarding about 35 licenses to the several entrepreneurs under OGL policy, both to foreigner and Indian, out of
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35 licensee only 3 i.e. RIL, EOL & Shell opened their outlets, some by the companies and some through dealers. In the initial stage the sale of 3 companies by passed the sale of IOCL due to non-subsidized product and IOCL became the least selling company despite highest infrastructure as a result the Govt. in order to help IOCL kept so much of variation between the price, almost all 3 private companies opted out of race either to do business in losses or close their outlets. The entire exercise was only to keep dying IOCL on resuscitator and to help all the 3 PSU oil companies to avoid shutting their outlet and IOCL started showing profitability of Rs. 11,000 crores p.a. after 2 lac crores subsidy was provided by Govt. in addition to cheap crude provided from the coffer of upstream oil companies as well as cash subsidy in the name of BPL to operate in the Indian market but Govt. kept on adding one condition or another and restricted the license to only 3 PSU oil companies hence the very purpose was defeated when government himself kept on giving subsidy on hydrocarbon out of public money only to the Govt. owned companies, rather than lowering the taxes so that the this companies will not sane die, the object was straight not to involve the petroleum product under the ambit of competition by giving protection. The fact is that Competition Commission and Transparency Commission is keeping its eyes close to the wrong doing of Govt. knowing well that any objection from them will hit harder to Ministers, bureaucrats and employees of the corporation and continue to be blind to the fair competition by allowing corruption. Why not the role of competition commission should be restricted to taking instructions from Govt. or this post should be abolished all together The area in which the competition commission should be allowed or not allowed should be decided by the Govt. so that aggrieved person will not go to Competition Commission and waste his precious time. The role of Competition Commission and Transparency
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Commission should be made clear as to why Governments action in cartelization of Petroleum Retail Policy which has become a Pandora of corruption by the bureaucrats and executives of oil companies has not been declared unfair trade practice since last several decade. The major problem started in the Government due to 2 tier pricing system both in Petroleum as well as in Gas. In petroleum sector in order to control vote bank the Kerosene price were first bifurcated in the 2 parts. The first was subsidized BPL Kerosene which was 3 times lower than other petroleum products used for the same purpose. The 2nd part of Kerosene was for industrial purpose. There was a huge gap between BPL Kerosene and Kerosene for industrial use. In due course of time Govt. introduced a dye in order to identify the Kerosene meant for BPL. In fact, both were same product except for price difference. When the gap started increasing the Govt. discontinued industrial Kerosene and substituted the same with tax free diesel to some industries which was 30% cheaper than the petroleum product sold in the outlet. In short, two tier systems always remained in one form or another. The Govt. did not discourage to equate the price. The reason was simple. The politician, bureaucrats and executives were diverting the BPL product for industries under the incentive scheme in order to benefit with the capital subsidy. It is further emphasized that whenever or wherever there is two tier system in pricing for the same product be it food, cement, diesel, gas, fertilizer, seeds, milk, edible oil, steel etc. the corruption is bound to be there. There is no system in the world yet developed that 2 tier system in the form of subsidy for the same product one for one class of person and other for another class of person has ever been successful. Even in Communist Countries it has failed.

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Similarly, government was imposing one restriction or another targeting the Retail Outlet dealers that there is involvement in contamination or adulteration. The fact is that both petroleum products Kerosene, Diesel and Petrol are supplied from the same very location and the oil executives were well aware how to make additional money by indulging in wrong doing. The object of adulteration was defeated when Govt. decided to add alcohol (rectified spirit) between 5 to 10% in petrol i.e. Motor spirit. Subsequently, Govt. banned Bio-diesel which was imported at half price of crude for use in agricultural purpose instead of diesel. The reason given was that the profitability of PSU Oil Companies is affected. One can see that Govt. itself was major adulterant at source and that is why Govt. was not willing to implement its own commitment as per the IS Specification because even Depot product will also fail if BIS test is carried out for purity. This is why no product of PSU Oil company is compatible with IS Specification nor any PSU Oil Company has taken license from IS authorities. The irregularity was noticed by Govt. itself and had a concurrent consent of Ministry and PSU Oil Companies. When the Bio-diesel was banned despite clear instruction; Government was spending crores of rupees for research on Bio-diesel in the name of alternate energy. On the other hand several companies spend crores of rupees for manufacture of Bio-diesel and had to suspend their work due to Government policy. It is the irony that Oil companies selling Diesel @ 51 Rs a Liter is demanding to compensation 10.60 towards the losses per liter incurred for selling Diesel due to crude purchases at higher prices but object to import of Bio-Diesel from Malaysia for Rs 26 per liter both are uses for same purpose and both are derived from import, the only difference is that bio diesel is non pollutant and diesel is most pollutant. It is now seen on one hand Govt. had banned import of bio- diesel but has

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approved to the PSU Oil Companies to add Bio Diesel in the H.S. Diesel, if this is not adulteration then what it is? Simultaneously, Government allowed the new product called HSD BioDiesel. Almost 10,000 crores of rupees were spent by different ventures to promote and sale Bio-diesel. Bio-diesel was mostly supplied by Malesian based companies as by-product of waste palm oil. Several companies including one in Raipur (CG) which is government owned also started producing bio-diesel from different biological plants such as Jatropha. M/s. Tinna Oil & Chemical which is part of global major Archer Midland Company of US has proposed 50 TPD Bio-Diesel plant in Latur, Maharashtra based on Jatropha + Pongamia based on continuous process technology. However, the production remained very low. Even this bio-diesel was sold out almost at 40% less the cost of diesel on the spot. Mostly all commercial vehicles mix the bio-diesel with the diesel supplied by PSU oil companies and to remain in competition of the transportation business. Simultaneously 3 big houses out of them one in Calcutta viz. Himani has spent about 150 crores for setting up plant in West Bengal. Even the HPCL has set up a similar plant at Sitamadhi at Bihar similarly government decided to add ethanol based alcohol in petrol up to 10% of the volume. Suddenly Govt. has decided to ban all the biodiesel for the commercial use under pressure from PSU Oil Companies and reduced the quantum of ethanol or alcohol to 5% to be added in petrol instead of 10%. It is an irony that on one hand Govt. is claiming loss in fuel sector by obstructing private players to compete with PSU oil companies and on the other hand same government is keeping its monopoly in black gold by imposing totally unwarranted restriction. Even today, the Govt. of India is
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spending huge amount through various research oriented group including TCS by paying exorbitant amount for developing diesel substitute. This include plantation of Jatropha in the railway owned land but we dont find any such trees on railway owned land which is used for defecting manual waste openly to impress foreigner, this example was sited by the Danish authorities, when India sought extradition of principal accused in arms drop case. In Pugulia arms drop case Danish Govt. refused to extradite the principal accused citing the example of railway land and open defection on the said land to demonstrate unhygienic condition of Indian Jail which is unfit for human habitation. This is how the Ministry of Petroleum hand in glove with other Ministry plans self reliance of fuel policy which is nothing but washing hand in polluted Ganges. Another experiment of Govt. is adding alcohol in petrol. In fact, cost of alcohol which was Rs. 11.50 per liter has shoot up to Rs. 17-18 but Govt. is adding State Excise, Customs etc encouraging alcohol for personal consumption and cost @ Rs. 320/- per liter to the consumer under prohibition trade of sale of liquor which is main source of revenue for the State in the form of State Excise and controlled by the politician. If total revenue of alcohol and petroleum product is calculated it will constitute about 75% of total revenue for the State Government. It is despite the facts; most of the states are paying more interest out of overdrawing to RBI than the actual earning. For example, West Bengal Mamtas Govt. is paying about Rs.17,500/- crores in the form of interest to RBI whereas total revenue of the State is only Rs. 18,000/- crores and nothing is left for development. However, despite this odd, Gujarat Govt. where there is total prohibition and no income from alcohol is growing @ 11% P.A. and hence clean, honest administration and better management is necessary rather than indulging unwanted legislation which give raise
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to corruption. We should now look to experiment from Brazil which was once a bankrupt due to import bill of crude oil. This country was importing crude has turned into exporter simply by diverting petroleum product to alcohol which are free from pollution for automobile fuel. Brazil being worlds top most alcohol producing countries have adopted alcohol driven combustion engine based on sugar cane alcohol by modifying internal combustion engines for their transport need which is now popularized in most of the developed countries, mostly in USA though in USA corn is used as raw-material instead of sugar cane for extracting alcohol by the village co-operatives. Recently, an American Surveyor who visited India has suggested if the huge land of Ganges plain in Bihar which remain uncultivated is used for cultivation of sugar cane it can cater entire fuel need of India in addition to flood control due to erosion of river banks, but Govt. has thrown this suggestion in the dust bin though one of the Oil PSU HPCL has spent small amount of money for setting up plant at Sitamadhi in Bihar. What is necessary for India is import the technology for internal combustion engine based on alcohol and sale the alcohol through existing R/O. rather than setting up new retail outlets for hundreds and thousands of petrol / diesel driven engine vehicles. This vehicle are ultimately sold in India only and due to lack of technology import for internal combustion engine to improve alcohol based vehicles for transportation kept on increasing petroleum bill, there by defeating object of total prohibition on alcohol used for human consumption as well as increase of petroleum import which cost tax payer 1/3 of to total foreign earning. At one estimate the total consumption of alcohol used in India by the human for intoxication under the Prohibition Act which is fully supported by the Government is more or less equal to the petrol fuel used in 2
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wheelers and 4 wheelers except the heavy vehicles. The explanation given by the Government that methanol if added in alcohol is injurious to health and unsafe for human consumption, if the same is consumed by ordinary person is only cover up story. The actual fact is loss of revenue mostly to politicians who owe the entire alcohol trade as such the entire politics of India is based on alcohol trade and stealing the Govt. revenue at distillation point take care of entire financial need of the politicians to manage 121 crores of population. But we do not know the mortality rate due to alcohol consumption in India especially in lower class it is about 3 to 3.5%. In addition to damage to health, the loss of productivity especially in rural area is enormous. Almost 50% of the rural population especially the male and youth are addicted to alcohol and this has to be compensated by females working for odd job on whose income the entire household is managed. The repercussion is on children who despite RTE remained at workplace with their mother rather than going to school. What is important that Govt. should diagnose the cause of poverty which cannot be compensated simply by subsidy and require corrective action rather than encouraging corruption and gratification. In India all decisions taken are politically motivated for personal gain of minister and bureaucrats take care of it keeping their interest in it. The price negotiation with PSU Oil Company and Agriculture Ministry on this low grade alcohol went for several months due to price dispute. First it was decided Rs. 17 per liter which was revised to Rs. 21 and now again revised to Rs. 27. The practice of adding the alcohol up to 5% in petrol is still optional in PSU Oil Company but has since been started. The question arose is if bio-diesel can be added in the diesel by the oil company and alcohol is already added in petrol. Why the same definition will not fall as contamination. The definition of contamination / adulteration is by adding a similar product of low value like milk is added
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with water; as such case alcohol is added in petrol by PSU Oil Companies in Depot itself why not this does not come within the definition of adulteration, if Govt. approves adding 5% of alcohol in petrol which is authorized practice and earlier decided to add 10%. If the difference of alcohol price of Rs. 7.50 which is added in petrol (which comes to Rs. 75 per 10 liters and if alcohol is mix at 10% by volume instead of 5 %) presuming per day sale of 1000 KL in Nagpur, and if the Depot Manager opt to offer 10% alcohol instead of 5%. The difference in the price will be Rs. 4.80 per liter and half of this can be easily pocketed by issuing bill for only 5% alcohol instead of 10%. The net profit will be 48 divided by 2 = 24 lakh rupees per day which will go unchecked as such it is practically impossible to detect whether petrol is added with 5% or 10% of alcohol. Under the circumstances, what is the guarantee that the depot staff will not indulge in the irregularities. With the import cost of Rs. 27 to 28 FOR Indian port, the Bio-diesel based on Algae can be easily sold at Rs. 30/- per liter. The domestic cost is about Rs.2/- higher. The total production of Bio-diesel currently in India is 3373 Tons per day i.e. equivalent to 40.47 lacs liters per day or 12.31 lacs ton per annum which is equivalent to 1.33% of the total consumption can easily be enhanced to 20 to 30% saving approximately 18 billion dollars per annum. However, Government is avoiding doing this merely because of losses of 8.1 billion dollar in tax revenue. However, Algae base Bio-diesel if put into use, the pollution reduction cost will be further reduced in addition to free cleaning of huge ponds mostly in water logging area, reduction in malaria without damaging ecology, but for Govt. it will be great loss due to loss of tax revenue to PSU Oil Companies, Loss to State Govt. since entire expenditure on cleaning ponds and its contract will go out of ambit of awarding contract
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and loss of local sale tax and reduction of malaria eradication budget, and further loss to pharmaceutical companies due to loss of malaria medicine reduction in sale. What is important at least in India is that rather than mixing one product with another there should be freedom of sale of by-product such as Biodiesel, alcohol, kerosene or any other product openly without allowing oil companies to sell their product and allow customers to purchase any product from anywhere and mix the same at his own discretion rather than punishing thousands of R/O dealers / harassing the customers and encouraging corruption. If this policy is adopted the quantum of import more particularly petroleum product will drop drastically and dispute if any and corruptions will disappear altogether. The recent policy of the government introducing Adhar Card for deleting part of the petroleum subsidy and substituting with cash is nothing but Cash for Vote for winning forthcoming national election to continue Nehru Gandhi dynasty as such there is no other agenda with Govt. at least for the fuel policy, nor there are resources to develop the same. The Prime Minister has already announced increase of petroleum product by Rs. 10/- for all categories of petroleum product. Presuming raise in the price is base rate (excluding taxes) the price of petroleum product will touch to Rs. 100/- for petrol and Rs. 70/- for diesel per liter. In simple words, this will generate additional revenue of 10-15 billion dollers in the coffer of ministry. This is exactly the same amount our politicians, bureaucrats and executives spend on their leisure trip every year abroad at tax payers money. The said amount is less than the entire expenditure on 10,50,000 armed forces who are standing 365 x 24 to protect our borders
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in sub zero freezing atmospheres. Most of them either dies on duty or suffer permanent disability and live on a meager pension for the rest of the life after 66 years of independence. The Govt. of India claims to have no funds for defense and rely on the weaponry used during 2nd world war. Incidentally, the crude price in international markets both in NY and Brend Crude is going down at the average one dollar per week, whereas price of Indian petroleum product is steadily increasing despite Govt. is claiming decrease in inflation from 9.5% to 5.2% in last two years. If the Govt. figures are true how is that US dollar which was worth between 3637 rupee a dollar has become 56-57 rupees. This states that Govt. figures on inflation are blatant lie, false, fabricated and something is seriously wrong with our development model. o

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ALIBABA AUR SOLAH CHOR:

COAL BLOCK ALLOCATION POLICY (Free Goldmine Allocation (Entry restricted for Politicians)

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The God has given energy through the Sun free of cost, it is the only product Govt. could not charge tax till date, it is because there is no Govt. organization to manage it and sun rays reaches to the common man without being routed through Govt. agencies. At the present rate the sun energy may last for another 200 billion years or till such the country is manage by present politicians and bureaucrats and their dynasties, but the consumable energy and the resources which are available in the form of coal, petroleum etc. are very limited. The coal in India may last for about 200 years. Naturally it values to the nation in the form of money. Huge amount of money may be required for developing infrastructure for alternate energy but our Ministry is so liberal that since the day of independence after nationalization of coal, Coal Ministry slowly and gradually started giving natural resources, more particularly coal belt / blocks free of cost, first to the Govt. agency through Coal India and slowly and confidentially to few industrial through politicians justifying they are linked to generation of electricity. The fact is otherwise. The Electricity Boards were using coal till few years back without washing but with piling of ash it became so difficult that Govt. has opted to ensure that washed coal should be used for power plants but most of the coal mines were Govt. owned and washeries were privately owned it was a win-win solution for coal dealers. A good quality coal was sold to the steel plants or to the private entrepreneurs for hefty profit. The heavy coal with the maximum ash content was separated and added with the stone and dispatched to the power houses where the board officials will gladly accept the coal for small consideration as a result break down of machinery was frequent followed by allegation and counter allegation pertaining to the quality of coal, sub standard generation machinery etc. etc. For example, in and around Nagpur Koradi Thermal plant which was using un-washed coal for its 230 mega watt power plant was written
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off in less than 15 years and out of 4 boilers only one boiler was working in the power house, the generation cost was between Rs. 26-36 per unit. This was not the fault of machinery but fault of rejected coal and person responsible for accepting the same. Several such irregularities caused acute shortage of electricity due to breakdown. No Govt. plant generated in excess of 60% of its generation capacity and transmissions losses were as high as 32-35% of remaining generation. For every 100 KWA of power generation cost was 60% more than the originally estimated and transmission losses were 24% of balance generation. So approximately 44% of the production reaches to the distribution point out of which 10% was stolen directly from overhead wires courtesy the board employees. So, less than 40% of the generation was available for appropriation in the form of revenue. This was further synchronized by the Govt. with price differential policy, BPL were expected to pay Rs. 1.33 per unit plus taxes whereas the others using above particular number of units were expected to pay Rs. 8-9 per unit. So naturally, the neo rich will take more BPL category meters with different nomenclature rather than taking one meter. This gave raise to privatization. Prior to nationalization most of the coal mines were in private hands and Govt. had no control over the coal mines. Source of coal was derived from various mines mostly situated in West Bengal, Bihar and Central India. Subsequently, lignite was found which was used for burning but coal remained favorites. Govt. in order to improve collieries, safety and production nationalized the entire coal resources of the country. This has hardly given any development and Coal India and its subsidiary could not keep pace with the demand. The rampant corruption in Coal Ministry made coal scare for the industry thus making Coal India official as well as coal mafia among richest. The black marketing was so rampant that in
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Bihar most of the mafia stealing coal either from nationalized mines or from unauthorized collieries /pits were controlling the Coal Ministry. At one estimate 40% of coal exploited from Bihar was unauthorized and 60% of the coal sold to the industry was diverted for other purpose and sold in black market. The result of coal nationalization was devastating. Most of the collieries became law and order problem. The national wealth was stolen with both hands by mafia and Coal Ministry officials. Even though the Indian coal was sold between Rs. 1200-1500 per MT it was still cheaper in the world compared to international price. The international market rate of coal was touching at 50 $ per ton. It is now 550 $ per MT for imported coal Ex-port. Even after this short coming Coal India was still a profit making company as such demand could not keep pace with supply. The major purchasers were Electricity Boards from linkage point to the power house; the coal was routed through washeries. In washeries coal was washed and good quality coal was sold in black market and remaining unfit coal was dispatched to the power houses for production of electricity. The result was frequent breakdowns of power houses. The cost of electricity was earlier computed at Rs. 1.20 per unit generation cost was shot up above Rs. 4 whereas Govt. is selling electricity to Tier I customer i.e. below 200 units consumption per month @ Rs. 1.81 and in some places mostly in Maharashtra even less than that. Electricity was a political tool. Some States gave electricity to agriculturist free of cost and some agriculturist states started supplying electricity by incurring losses to the farmers societies owned by politicians. The fact remains that farmers were hardly getting any electricity whereas in metros uninterrupted electricity is available. The supply of electricity to VVIP area especially in Delhi was synchronized with Grid and simultaneously with additional lines from Bhutan taken to
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ensure back-up. This was in addition to several standby generators. The Coal India rather than developing systematic mining have adopted a policy of open cast mining and entire profit was drained away for removing over burden. In some places most of the British era mine ducked as underground mines were substituted by converting open cast mine with hardly any difference in production. Even though India touched 560 million tons of production, there was a constant desired for import. Most of the companies especially those situated at coastal area generating electricity are dependent on import from Australia, Indonesia and African countries. This is followed by purchasing blocks by the Indian companies abroad to curtail cost and the entire profit of power houses were drained away on import bills rather than expansion. At this point somewhere in 2004 Govt. of India drawn a policy of privatization of the coal blocks when the import price of coal was 200 $ +. The Ministry was headed by no less than Prime Minister himself. Despite clear instruction from Coal Secretary, various coal blocks were allotted arbitrarily without any tender or bidding at the discretion of some interested group and our PM despite being warned remained blind justifying irregularities. The average cost of blocks allotted was less than Rs. 100 per MT paid under the table, against the market price of about Rs. 2000/- and import cost of 550 + Dollars per MT. The beneficiary like Jindal Steel, Nalwa Steel, Reliance Power, Tata, Ruias and most of the business houses were the major beneficiaries through politicians. Everyone washed their hands with black coal on the floor of white marble of PMOs office Shri Manmohan Singh who claimed his career is like open book and by justifying wrong doing vis-a- vis development, can he clean the dirt of business houses with such explanation. Obviously ruling party hand in glove was the major beneficiary. When the matter was
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audited by the CAG, it was handed over to CBI and doubting the integrity of CBI, CAG again stepped in and found net losses of Rs. 1,86,000/- lacs crores to the national exchequer due to gross irregularities on the part of PMO himself for allocation of 194 blocks. Most of these blocks were allotted to politicians free of cost. They were resold to actual users for thousands of crores of rupees. The Congress Party and their alliances were so agitated that they started pointing finger at CAG for obstructing development even though none of the allottees even started raising the mine till the SIT probe was demanded by Opposition Parties. This is the first time since independence of India that ruling party has pointed finger at the authority of CAG which is totally independent of the Govt. and the current Govt. of Shri Manmohan Singh is piled up with the corruption charges together with his 16 Ministers in each department of Central Govt. Now it seems the clean PM justifying his career as open book is not different than the other who were entrusted to manage the affairs of the country. The contention justifying allocation of coal blocks are that at every step Govt. has manipulated the energy resources but not for the national cause but for personal gain. With the growing population and high rate of unemployment, how this country will be ruled when the national resources more particularly the energy resources are becoming more and more dearer and it is a matter which requires immediate attention. In recent allocation 194 Coal blocks were allotted to the industrialist without process of auction despite proper guideline. Almost all the blocks were allotted to the industrial houses / company owned by politicians having close proximity to the political icons (Govt. in power). Though 40,440 million tons of additional coal reserves were allocated to the
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private parties, in order to meet about 460 million tons of additional capacity p.a. but till 2012 except one industrial house entire blocks and reserves were not even touched by any other allot tees despite they all were issued with prospective licenses and the import remained top priority for the consumers, more particularly, power consumers. It is an irony that 5 states Assam, West Bengal, Bihar, Chittisgarh and Odisha are holding among the best quality coal reserves and are not producing enough coal even for their own states. Most of the coal which caters to the countrys demand comes from Orissa, Jharkhand, M.P. and Vidarbha. The most pathetic condition is in Bihar where thousands of unauthorized pits are dugged to steal the coal by the private contractor basically to cater the need of the State out of which 95% of the coal is stolen from these pits and is used for cooking purpose or in small industries. The Bihar is one of the richest states for mineral with fertile land but grossly mis-managed state in the world where per capita income is less than the Bangladesh. It has potential to defeat South Korea or Japan with hard working people who are unfortunately victim of our corrupt system, over population, even basic amenities like electricity, toilet, safe drinking water, education, Medicare is unheard of. The result is exploitation of people, law and order problem and every next person is leader of one party or another. Now this state is thriving with minorities backed by our western neighbor providing illegal weapon and counterfeits currency to destabilize the country as a result state has became capital of Naxalites. The basic route cause is development and for the development the basic need is energy. With plenty of resources Jharia, Dhanbad belt of Bihar / Jharkhand which is burning for almost 60 years, only one effort has been made to extinguish the underground fire by the Russians. The Govt. did not invite any other country to solve this problem. If this process continued the entire Dhanbad will sunk in due course of time causing
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havoc and loss of life. By one estimate if this fire is converted to energy or extinguished the reserves from this very belt will be sufficient to change the entire outlook of the State and the energy shortage will be converted to a surplus making Bihar a profitable state on sale of energy / electricity. India is one of the largest importers of coal though it has huge resources which are untapped. One of the main reasons is nationalization. The policy of coal nationalization has failed due to rampant corruption, inefficiency in work, lack of management and involvement of unions through communist ideology and support. Practically every Chairman of Coal India and every mine manager is under scanner of CBI for profiting out of nationalization. The estimated reserves of finest cooking coal i.e. roughly about 2 billion MTs are being systematically destroyed due to continuous fire in abundant underground mines in Jharia Dhanbad belt. Initially Coal India has given contract to Russia to extinguish the fire but the entire operation was dropped due to lack of technical know-how which was not available with Russians. Coal India has not bothered to extinguish the said fire as it does not have financial resources and is not willing to seek assistance of advanced countries who are capable to offer the technology such as Poland, Australia and USA. The Australian firm who studied the methodology of allocation by the Ministry is of the view that neither the Ministry nor Coal India is having know-how for creating mining policies nor they seems to understand how much investment is involved. The technology to extinguish the underground mine of Jharia is very very expensive so that private companies making investment in this venture would need to know that there investment would not go down the drain because Government decided to change the rules. The Govt. has allocated practically 194 mines free of cost mostly to the politicians or
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their kith and kin who in turn have sold the coal blocks for hefty profit to actual entrepreneurs without adding a single paisa to the national coffer but the same very Govt. will not allow the foreigners who are willing to invest huge money on a coal belt which otherwise would be destroyed due to fire in next 200 years knowing well this will add at least some money to the revenue of state or reduce burden of import, employment to many and non implement of such policies ultimately cost drainage of foreign exchange for purchase of coal through import, which is offered by the outsider free of cost. Due to faulty policy of the Govt. the actual manufacturer has chosen to invest approx. 23.5 billion dollars in coal mines in Australia, Indonesia, Mozambique and some other African countries. The greatest surprise is that Coal India itself is negotiating with Russians to tap the coal resources in Central Russia, Siberia and in Africa which will be imported through eastern Russian port. Rather than investing 1/10th of amount in Jharia / Dhanbad belt to exploit resources and to extinguish the fire by importing the technology. Similarly, huge lignite belt in Gujarat, Rajasthan and North East are lying untapped and can be used for setting up mega electricity generation plant but they are being held up due to Government clearance. What really surprises that Indias environmental policy, India stood with China who releases almost 100 times more industrial pollution than India and failed in getting proper carbon rating incentive. In fact, almost all the countries were surprised when India supported restriction of quota based carbon dye oxide discharge to support China rather than opposing the same whereas since 1948 China has not supported a single policy of India in any form. By supporting China in unrestricted carbon dye oxide emission India has demonstrated the policy of Govt. without any gain to the nation.

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The Hon. CAGs observation clearly demonstrate that every policy of Govt. be it coal, communication, petroleum, railway or aviation which are implemented by the ruling party with the specific purpose for generating revenue to Party A or B, object is personal and not national. The power of CAG is not only limited to the duty of Chartered Accountant but also to ensure that such policies will not be misused and should be used for generating funds which otherwise are required for nations development. Though the Supreme Court held that auction of all national resources are not mandatory for all purpose and has empowered Govt. to act at their discretion to ensure that any misuse of power is subject matter of review but directly or indirectly the full bench of Apex Court has created an ambiguity by not justifying the role of CAG in a matter which otherwise could cause loss to the nation, if the remedy is optional it should benefit the nation and not the politicians. It is something like Supreme Court has announced a very good judgment giving on one hand opportunity to bureaucrats and minister to continue indulging in malpractice and on the other hand they have satisfied common man that doors of courts are always open to justify malpractice and losses incurred defining that rule making is job of Govt. The question arises that does Govt. has power to make rules which otherwise are dubious and indirectly can be used in non-transparent manner. Why to blame a Class-IV employee for taking 5-10 rupee bribe when our top most leadership practically trade the interest of nation for themselves and for their kith and kin and shamelessly justifying their wrong doing. Some of them come out of jail laughing as such it was a vacation. A retired DGP of Rajasthan involved in molesting 14 year old girl when released from jail shamelessly said one should keep smiling even in trouble. It was disgusting when the Rajasthan Govt. rewarded him not only with back wages but with all benefits and he roam freely as such he got
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Olympic Gold Medal and not imprisonment for molesting a minor girl who subsequently committed suicide. In Coalgate scam it is well-known that other than politicians, industrialist, more particularly Coal Minister and Prime Minister himself were well aware that steam coal mines and finest cooking coal has been awarded to the close relative of coal minister for State and some politicians free of cost who in turn were selling this block in market by transferring their share for billion of rupees. It was straight forward dejuro gratification by the Congress Party. For other actual users a standard rate was fixed to pay Rs. 200 per MT of reserve as bribe. As per CAGs estimates 1,86,000 lakh crores is not even 5% of the total quantum from the reserves which are allotted free of cost. The actual figures will be above 10 times the present rate of 550 $ per MT for coal to be imported. The calculations on account of loss to the national exchequer are highly undervalued. It is commonly known at the time of nationalization that 40 to 50% of mines were left for the private sector with the intention to get clearance and to make investments. Most of them were abundant mines as such Coal India did not have money to exploit them. The same were allotted to the actual users and actual users were happy and willing to offer part amount for left over reserves which otherwise they were purchasing from open market in black or importing from unauthorized seller double the government rates. This demonstrates that Coal Indias nationalization policy has failed and the politicians were waiting to make hefty profit on account of inefficiency of Coal India. At one estimate if Jharia Coal belt which is likely to be available for another 200 years of coal reserves if utilized properly can cater roughly 40,000 mega watt of power by setting
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up 4 super thermal power project in and around mine area. It is exactly the same quantum of power which India is facing deficit for the entire nation. Rather than wasting huge money on common wealth game, Ram Sethu, purchasing aircrafts for the dying airlines and billion of rupees in the name of irrigation, it is time that planning commission should think that all such expenditures are ultimately not pocketed by the politicians and must be utilized for badly needed infrastructure to counter the defense of the country against China and other neighbors. Another problem is clearance. The Govt. while allocating mine or even a small quarry purposely keep some lacuna such as environmental clearance, electricity, habitation or housing, water etc. which have to be brought in by the mine owners from far distances and further to get consent from leftist politicians, powerful NGOs and local habitants. Once all these things are cleared and each paper is in order it is then the coal blocks should be either auctioned, similar to oil blocks, through the international bid with a reserve price. But the policies are made such by Coal India or even by the mining department that so many NOCs and clearances are required that cost roughly 30% more earmarked for development to be paid to the Govt. officials as bribe. India is the only country in the world where the duties of bureaucrats and Govt. servants is very limited to find faults and then charge for correcting the faults in a systematic manner after harassing the entrepreneurs. This is one of the main reasons the FIIs are not interested to come with investment for development. The second problem is union and labor related laws which are encouraged by Ministry of Labor wherein the role of Commissioner to the Inspector is limited to periodically collecting doles. In short, to run mines be it a coal or stone you have to pay bureaucrats and government

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servants in return for carrying out the work peacefully, thereby escalating the cost of production manifold. o

CBM (COAL BED METHANE)

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CBM stand for Coal Bed Methane. Coal gas consists of methane that is very similar to CNG. It can be pumped for the similar purpose as CNG but pollutant in nature. The only difference is the said gas is slightly heavy and contains traces of water. Once water is segregated, gas can be even compressed and safely used for power plants as well as for transport purpose. In 2003 Govt. has auctioned several blocks in West Bengal, Jharkhand, Orissa and Bihar. The major holding of the reserves were passed on to ONGC. The ONGCs estimate in Jharia block hold 85 billion cub. mtr, North Karanpura 62 billion cub. mtr, Bokaro 45 billion cubic meter, Raniganj 43 billion cub mtr where ONGC is holding 74% stake and Coal (I) 26%. After 9 years of delay 35% of the block has been sold by ONGC to the UK based Great Eastern Energy Corp. Ltd. popularly known as GEECL. Till writing of this the GEECL has drilled at Raniganj approx. 25 to 30 wells with the output of 8.3 million cub ft of gas per day which is supplied to Durgapur Asansol belt. Similarly, Essar group who is having approx. 85 wells in the same area in about 180 acres of land have an output about 28000 standard cub. mtr of gas. The demand for CBM is so great that Gail, HPCL and Greater Calcutta Gas Company have signed city gas with likely investment of 2000 crores and State Govt. is forcing GEECL and Essar to step up mining with assured purchase of gas for its power sector as well as for transport sector. The Exploration of CBM with the reserve of gas at the bottom of coal bed which contains methane plus water. The methane is nothing but LPG and can be used for fuelling the energy. Since the gas is heavier and contains more carbon derivative it also emits smoke. Rest of the properties are similar to LPG/CNG used for fuel, internal combustion engine (with
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some modification, fertilizer as well as power plant). The exploration and use of CBM which was a brain child of Nazis was adopted by the apartheid region of South Africa to compress and produce hydrocarbon in liquid form as well as for need of masses for energy and to rule the South Africa despite restrictions of petroleum export by OPEC due to their policy of apartheid (based on skin color discrimination), to avoid dependence on gulf importing countries, but this did not remain the priority sector for the Indian Govt. There are two proven belt of CBM i.e. Jharia and Dhanbad belt in Bihar (now in Jharkhand) and Wani / Yavatmal belt in Vidharbha. The Jharkhand belt is burning for last 50 years, neither the Central Govt. nor the State Govt. has taken any initiative to ensure that the burning gas can be removed by diverting the coal gas from cracking zone and can be used for setting up huge electricity plants in Bihar which is starving for the fuel and electricity and is amongst the poorest states in the world as well as it is among the most backward states. The present consumption of entire Bihar / Jharkhand is approx. 350 mega watt of power and both the states i.e. Bihar & Jharkhand are highest volume buyer of power through grid for their entire consumption which is equivalent to Mumbai whereas generation of electricity has limited supply of only 325 mega watt of power. Rest is purchased from the Grid thereby spending 40% of state revenue only on purchase of electricity. Bihar with almost Indias treasure of coal belt is scare of electricity, the uninterrupted electricity is available only in Patna and Ranchi which are the capital of the states. In Ranchi major electricity is derived from power house meant for SAIL. Rest of the state they have neither electricity for agriculture / industry nor for lighting purpose. At one estimate 62.5% of both the states do not have electricity in villages
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and hardly supplies electricity for agriculture and lighting for few hours in a week. This is the state of our national policy for energy. The biggest problem in our system is the country is managed by bureaucrats rather than technocrats. The bureaucrats most of them are Arts Graduates have occupied the position of managing this country come from IAS Cadre. They joined easily because their dynasty has been in IAS cadres. Say, for example in 2010 IAS Examination which took place in Patna, from Bihar out of 500 persons have passing rate of IAS i.e. 400 + from Bihar only and remaining 100 persons were selected from other part of entire India. This demonstrates that in examination itself there is give and take culture for selection. The integrity of selection committee is either purchased for money or for influence. Such people when manages the country which is governed by corrupt politicians and the most of politicians representing their dynasties in hierarchy are known to each other for decades and there is give and take relationship between politicians and bureaucrats. The executives mostly from the PSU Companies develop similar type of relationship in due course of time become part of the cartel which is necessary for taking extension and promotion and hence this chakravyuva of quit pro-quo can never be broken. None of them is really concerned with the ground reality and industrialists are always waiting for opportunity. Very little is known that by very simple method CBM can be converted to diesel, Kerosene and other fuel. IPCL which was once owned by Govt. before selling to RIL, its Kerosene conversion plant at Baroda meant for converting Kerosene to Diesel was sold to RIL at through away price despite the IOCL was
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having their refinery at Baroda itself and the same diesel was sold by RIL to IOCL. It is when all the 3 PSU oil companies were struggling to build new refinery mostly for Diesel only. Whereas all the 3 oil companies were purchasing the same very Kerosene through Reliance & Essar Oil for much higher price and selling same Kerosene as subsidized kerosene in the market through PSU Marketing Co, but none of PSU Oil Refineries even bid for the same and national assets passed on from IPCL and infrastructure practically free of cost to RIL. There was definite link for selling this conversion plant to Reliance despite that single bid process always requires re-bidding. No international tenders were floated. It is well known that refineries in India are open for foreign investment but only the marketing is in the hands of Government owned PSUs which are monopolized. On one hand the Govt. is taking initiative for FII investments and on the other hand the same very Govt. is creating conducive atmosphere so that foreigner rather than making honest profit sale their infrastructure and leave their assets either for Govt. to mismanage or to sale to the influential private players, so that Govt. officials can be benefited. We have a live example of Cairn India, Kochin Refinary, Chennai Refinary, MRPL and Vishakhapattanam Refinary in addition to the IPCL. All of them have opted to sale their stake to the Govt. or another Corporate House and left India for PSU Oil Marketing Cos to mismanage or sold to the private players to indulge in all wrongful acts with the blessing of Government. This Govt. is more concerned about BPL product. In India almost all food stuffs right from food grain, vegetable, milk etc. are adulterated either by mixing low quality product or cheap substitute. Half the spies/masala is
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sold in the market but none is pure. For example, the milk of big branded companies is adulterated knowing well that milk with urea damages the kidney of children also. Thousands of cases are revealed in media about dubious milk being sold for hefty profit. There is hardly any punitive action taken in the Raj of this Government. Similarly, edible oil is mixed with very low quality oil and branded with high quality label and ghee is adulterated with the fat of dead animal and sold openly. Several years back it was revealed in the house that Rath Ghee marketed with the photograph of lord Krishna and manufactured by DCM Group which was owned by pure vegetarian Mr. Jain congress veteran was sold in North India with beef tallow. There was a furor in the house and Kamlapati Tripathi who was eminent leader of Congress Party even opted to resign from the Congress Party itself. It is because the Tripathi was Brahmin and eating cow beef was not only unacceptable but also unthinkable. Similarly, most of the vegetable are given green look by adding most hazardous chemical so that they look fresh for enhancement of the value. All these are actually adulterants and the ill effects of adulterant to damage the health of people is permanent. We also see that fertilizer specially urea despite this being under Essential Commodity Act is normally adulterated with dolomite causing not only misery but failure of crop and several suicides of the farmers. The question arises here what punitive action Government has taken and what is the color test for the same. The mischief on the lower level cannot be concealed unless the top executives are wearing the same gloves. The only difference is all these edible products are not monopolized whereas the oil sector is monopolized through PSU Oil marketing companies and they have free hand on corruption and exploitation of few honest who are

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not willing to cooperate with the system and petroleum trade being monopoly of Govt. this practice can never be eliminated. We may summarize the entire policy as stated above in short. After independence, whether it is legal or not legal all business be it proprietary firm, limited company or with any other nomenclature. The entrepreneur must treat this guideline that your firms which you propose to start, the Government / the babus are sleeping and profit sharing partners during their life time without investing single penny, though unwritten. The entrepreneur must also understand he / she should be prepared to pay periodical dole to the babus even if he manages his business in losses. It is impossible for you to be successful in any venture unless you fully understand the above condition; you are likely to be unsuccessful entrepreneur in India, if you honestly do not adhere to the policy of sharing with Govt. babus though unwritten, till your life time. .o.

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CLEAN ENERGY

HYDRO ELECTRICITY - MISERY OF FARMERS

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One of the clean energy which is used for generation of electricity is hydro-electricity, which constitutes only 2% of total electricity generation in India, though it is one time investment, it requires no feedstock except flowing water but a very huge area of farmers land is acquired by the government or by the generating company. So in return of energy to few it causes unbearable misery to many who are displaced from land occupied by them and their ancestors for generation. Most of the villagers are paid so pity amount and practically nothing is left for rehabilitation. Moreover, major part of compensation is also swallowed by the system. Most of the displaced persons move to cities and end up staying in slums and work as casual labour. Half of the unsettled displaced farmers die of deceases, poverty and drug or liquor addiction. Government or Generating Company does not have any plan for rehabilitation nor have any blueprint for rehabilitation. Some who can afford take shelter of court and some look to politicians but majority of them end up being pauper and die in city slums and their female become luxury of rich familys maid servant and their young women ends up in flesh trade. So if you compare the impact of clean energy vis--vis social disaster, the damage to the society is more severe than the return. Another problem with the hydro electricity is ecological disaster to the forest. Hundreds and thousands acres of land is merged reducing forest land and further impact on the wild life which stray in city or nearby villages in search of food and water causing fear and unpleasant relation with the habitant. Major problem is hydro electricity reservoir is accumulated fertile mud chock within the dam which work as natural fertilizer to the bankside land as well as restricting water flow time and again in addition to frequent earth quacks as such underneath the surface
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rock formation normally break away causing displacement of huge underground metamorphic strata and causing disaster to the surrounding areas due to frequent earthquakes. Despite above odds if hydro electricity is produced with small reservoir and without displacing the farmers even in limited quantum, it can be a great contribution to the national grid. However, our bureaucrats basically not conversant with the ground realities always busy in taking loan from World Bank or international agencies for building huge dams , the construction, which takes almost half a century to complete and by that time the entire project is completed, purpose of the objective is lost or defeated. A live example is Gosikhurd Dam which is almost 30 years old and construction is yet to complete. The entire canal systems are lying incomplete but thousands of acres of land have become barren without any productivity due to displacement of habitants. The only persons benefitted are politicians, bureaucrats, babus and contractors.

ELECTRICITY FROM OCEAN

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In recent years some advanced countries are successfully generating electricity by applying the oceans tidal waves. Countries like Holand and Denmark have implemented similar electrical generation units which are also protecting their banks from the ocean tides. A huge unit of similar type is coming up in China probably with technical assistance of Dutch. Other countries more particularly, in Europe which are free from freezing in winter season are in advanced stage of implementing similar project. A joint team consisting of Dutch and America have assessed a catchment area in Gujarat in Kutch & Bhuj and recommended that a generation of unit for 1 lakh mega watt of potential exists only in some part of Gujarat State. But fund crunch and other hindrances from Govt. and bureaucracy, even the files are not traceable. Recently a Canadian Company has developed a propeller used for hydro electricity the propeller can revolve towards the flow of water gradually that means it can be used while the high tide is entering the bay and again reversed automatically with the flow, when the low tide starts. This can supply uninterrupted electricity with no impact to ecology. The only problem is proper technology and cost which may run into billion of dollars. However, our elected government, be it Party A or B have not shown any interest in such huge mega structure which can benefit the public at large without damage to ecology, without displacing the farmers and also protect the erosion of ocean banks. Rightly or wrongly like the mineral, the solution to the energy lies not on the land but in the sea. What is required is WILL and productive thinking for exploitation of alternative energy, which is missing even after 65 years we became independent. SOLAR ENERGY

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Solar Energy is one of the new concepts which is coming up almost all over the tropical countries. The sun has a capacity to deliver energy through sunrays for next billion of years, which is unending source of energy. The greatest hindrances to solar energy is consistency. The generation of electricity is routed through series of batteries and battery has self life as well as periodical maintenance. Another problem is sunrays, keep changing its direction due to

revolving of earth and solar rays are available morning till evening and when darkness falls the pro sensitivity cells stop working, so the chain reaction is for limited hours. The second biggest problem is huge space is required for catchment area and hence if solar energy farm is developed they can only be supplied to the grid to maintain the current. The consistency decreases considerably during night hours as such accumulated energy from the battery start releasing the current. However, in small scale solar energy has been successful in water heater for domestic use as well as for lighting in the passage way for multi storied buildings. There has been experiment in some places for street light but the cost is prohibitive. In India BHEL has initiated a photo voltic film plant in Nagpur but bureaucratic hindrances causing delay will probably force BHEL to shift its plant somewhere. China has been very successful in both generation as well as manufacturing film for solar energy but India is still dependent. Gujarat is the only State which is tapping the solar energy and has planned to add more and more such units. Rajasthan which is Congress ruled state is planning 3 to 4 smaller plants but it will take several more years even to start despite abundant solar energy and potential to tap the same. Solar water pump have been very successful in
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Israel and in some of the advanced countries but in India it is only a luxury. Coimbatore is the only city in India wherein various units relating to solar energy lamps and small domestic solar units have started manufacturing various solar equipments which are installed in remote locations. The only problem is maintenance. Our people are too lazy even to clean surface area of the solar panel and / or to check the batteries. In addition to this, Government subsidy makes it very lucrative for industrialist to compromise quality and profit most of which is swallowed by the system. Such fields which are not much profitable should be handled by the Govt. for many years rather than passing the subsidy and making it responsible to the private players to execute, they would not like to work for charity but for livelihood. The solar energy is one such alternative that this country can look for lighting, pumping the water, cooking through solar cooker etc. What is required is proper technical know-how which could be extended through the ITI and create the job to maintain the equipment. In addition to this governments monopoly over it should not be abolished and subsidy should be given by exempting entire tax and by setting independent dept. The intention should be no profit and that can be achieved by the Government only. The nano solar penal are likely to be introduce, once the nano solar penal are introduce the concept of solar energy will change all together.

WIND ENERGY

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The wind energy has been very successful in coastal area, more particularly in western European countries especially in Holand and Denmark. It is over hundreds of years they have been using wind energy for pumping the ocean water which releases over flown ocean water back to the ocean from the low lying area which are embanked but with technology advancement there has been huge farms, more particularly in California desert and in Europe wind energy farms are coming up which are as huge as entire village. The wind farm has almost same use i.e .back up energy to the grid. Wind energy is also called Whims Energy as such it depends on flow of air which keep changing at whims. However, near the ocean banks there is always a wind and it is more effective though not reliable. In India there are several companies which are manufacturing wind energy equipment. This energy is generated only for the purpose of selling electricity to the Grid to get special incentive. In India it is a policy that if you supply alternate energy to the Grid you can get special incentive for purchasing wind energy and in return you can get similar amount of electricity generated from the Grid uninterruptedly, without paying any amount. In simple term its Quid-pro-quo basis. The industrialists are benefited with this policy as such generation cost of electricity through wind energy is less than Rs. 2/- per unit whereas in return they get industrial power free of cost which costs Rs. 4.50 per unit. So there is a saving of Rs. 2.50 per unit and that comes without any investment. In addition to they are entitled for depreciated value of wind mill + incentive. Most of multinations and government undertakings can afford wind mills since they have surplus cash. Despite so many incentives the wind mill is still has not become popular in India and it is presumed as only luxury. Smaller wind mills if properly developed can
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be of great use at least for pumping well water but this concept has not been encouraged by the Government.

CONCLUSION:

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The national fuel policy of hydrocarbon, coal and electricity is total failure. India needs approximately 15 million tons of additional petroleum products per annum in order to sustain present growth of 5.3 % in addition to 40,000 mega watt of power every years in order to balance present rate of growth, which is unlikely to achieve by the Govt. The Governments policy relying on the atomic power is not sustainable due to technological sang in thorium technology, dependence of Uranium from anti nuclear policy making countries and delay of developing indigenous fast breeder reactor technology in addition to very high cost and security fear in the common person. Country will continue to face shortage of hydrocarbon and energy due to Govt. policies and highly corrupt bureaucrats and executives with rampant corruption in the government machineries, right under the nose of Prime Minister who himself is heading the coal ministry and his office is involved with looting the national resources. The present policies of Govt. fuel policies resources of monopolizing natural

demonstrates that country neither has skill nor the resources

to take care of systemic exploitation of natural resources for the welfare of common man nor is capable of forming proper the fuel policy for benefit of nation. 0.

AUTHORS PROFILE:

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The Author 67 hails from Nagpur. He has been associated with both energy and mining activities since last 35 years. Having worked with Offshore Petroleum E&P, Atomic Energy and Mining, he is conversant with the ground realities, policies and untapped resources in the country. The idea of publishing this book is to familiarize the common man that unless optimum realization of resources, exploitation are planned and development of infrastructure are speeded up through proper technical person and resources are managed honestly, which is highly impossible through dishonest government managed machinery, this country shall have blink future to provide common man with their daily need of fuel requirement and should be prepared for unmanageable extreme hardships in the near future. Author

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