Kejriwal accuses Modi of Adani nexus

Last Updated: Tue, Dec 04, 2012 18:35 hrs

New Delhi: Activist turned Aam Aadmi Party (AAP) party architect Arvind Kejriwal on Tuesday attacked Gujarat Chief Minister Narendra Modi ahead of the assembly polls in the state this month, alleging that Modi favoured Adani group by manipulating bids on power purchase and also bought peace with Congress and judiciary on the acts by doling out sops in forms of lands.

He also said that stakes worth thousands of crores in Gujarat State Petroleum Corporation's (GSPC) gas exploration project in the KG basin was given away to a companies linked to Congress.

"If Congress is Mukesh Ambani's dukaan [shop], then is Modi government Adani's dukaan [shop]?,"asked Kejriwal saying that in 2007, Gujarat needed electricity and Modi government which was buying it from Adani on temporary basis at Rs 5.45 per unit, decided to enter into long term power purchase agreements, which would be cheaper, but finally got it at much higher price.

"It called for bids. The bids were manipulated to favour Adanis," he said, adding that Modi bough power paying more from Adanis and burdening the common people.

He said much of the documents with him were procured from Sanjiv Bhatt, the anti-Modi IPS officer whose wife Shweta Bhatt is now fighting polls against Modi on Congress ticket.

"Gujarat High Court passed a stinging order against Modi Government for brazenly manipulating the bidding process and for favoring Adanis. In February 2007, Gujarat government entered into two agreements with Adanis to supply electricity at Rs 2.35 and Rs 2.89 per unit respectively. Interestingly, two months before this, Gujarat Mineral Development Corporation (GMDC), which is Gujarat Government PSU, had offered to the Gujarat Government to supply electricity at the rate of Rs 2.25 per unit. This was much cheaper than what Adanis were offering," alleged Kejriwal.

He said GMDC had its own coal blocks and it had offered these coal blocks to KSK Energy Ventures Ltd, which in turn agreed to supply electricity cheaper at Rs 2.25 per unit.

"Rather than accept GMDC's offer to supply cheaper electricity, Modi government decided to purchase electricity at much higher rates from Adanis. Why did Modi do that? A few days after signing the agreement, Adani started blackmailing Gujarat government. They refused to supply electricity till they were supplied coal by Gujarat Government," he said.

"GMDC said they would be happy to supply coal if Adanis agreed to supply electricity at reduced rates of Rs 2.25 per unit, the rates at which KSK was supplying electricity, who was receiving coal from GMDC. Rather than reprimanding Adanis and cancelling their contract for this blackmail, Modi personally intervened. Mr Jose, the Chairman of GMDC was transferred out. GMDC was asked to supply 50% of its coal from Naini block to Adani," claimed Kejriwal.

He said in effect, Adanis walked away with coal blocks without supplying the electricity at cheaper rates.

"Therefore, Modi's love for Adanis cost Gujarat people very dearly. All these years, the people of Gujarat were forced to pay much more for electricity. Finally, Gujarat government had to enter into power purchase agreements with other parties at much higher rates," he said, adding that Adanis were granted land at throwaway prices

"Congress and BJP are doing joint business. That is the misfortune of this country. If Gujarat is being looted we will raise our voice," he said.

"In Gujarat elections, Modi and Congress 'appear' to be politically pitched against each other. But documents reveal that behind the curtains, they are happy doing business with each other and with same set of people," he said.

"Modi 'gifts' away 20% of GSPC's stake (10% of it given to Shobhana Bhartia's husband's company. She was nominated to Rajya Sabha by Congress)," he said.

Gujarat State Petroleum Corporation (GSPC) is an oil and gas exploration company of the Gujarat Government. GSPC acquired gas blocks in KG Basin in Aug 2002.

"According to government's own estimates, the gas fields allotted to GSPC were worth $20 billion. Modi government entered into production sharing agreements with Geo Global and Jubilant Enpro Pvt. Ltd. Modi gave away 10% of participating interest to each of these two companies completely free of cost," he alleged.

"In turn, Geo Global was supposed to provide technical assistance. The first question is - how were these two companies identified? According to records, it was not through any competitive bidding. These two companies were simply given away the participating interests in these gas fields free of cost."

"What is the value of benefits given to Geo Global and Jubilant Enpro Pvt. Ltd? Mukesh Ambani's Reliance is an operator of gas fields in the same area. Mukesh Ambani invited British Petroleum last year to provide technical assistance and entered into a similar production sharing agreement giving 30% stake to British Petroleum (BP).

"Mukesh Ambani's fields were valued at $ 24 billion at that time. BP had to pay $ 7.3 billion (Rs 35,000 crores) to acquire 30% stake and to provide technical assistance. In sharp contrast, Gujarat government gifted away 10% stake to Geo Global and Jubilant Enpro Pvt. Ltd each. Therefore, the value of this "gift" given by Modi Government would be Rs 10,000 crores to each of the two companies," he said.

He said Geo Global was incorporated just six days before their agreement with GSPC.

"On the day of the agreement, its total capital was $ 64 (Rs 3200) only. The company is owned by some Jean Paul Roy. So, from Rs 3200 worth company, it became a Rs 10,000 crore worth company within six days. Whereas Modi government is trying to defend its agreement with Geo Global saying that Geo Global provided technical expertise, Geo Global in its own admission to Securities and Exchange Commission in US has said that it does not have the necessary expertise," alleged Kejriwal.

He said Comptroller and Auditor General (CAG) has raised serious doubts about Geo Global's technical competence. I

He said Congress partners with Modi in the loot

"Jean Paul Roy seems to be both Modi's and Congress' man," he said adding that Modi bought peace with Congress by allotting plots of land to its MPs and MLAs in prime areas of Gandhinagar.

"The plots have been allotted at highly concessional rates of Rs 45 per sq mtr. The plots were allotted so that the MPs and MLAs could construct their houses on these plots. But most of them have sold these plots at much higher rates. Why did the Congress, which is the Opposition Party, not raise its voice against this scheme? Because MPs and MLAs from Congress also have got plots and they have also benefitted from this scheme," he said.

He said this matter was challenged in Gujarat High Court and the Court stayed the sale of these plots.

"In order to keep the judges also happy, Modi gave concessional plots to all the sitting, retired and promoted judges of Gujarat High Court in April 2010. Barring a few judges, all the other judges accepted this Modi's offer. Since then, this petition has not been heard by Gujarat High Court," claimed Kejriwal.

He said the MPs and MLAs are openly selling their plots despite Gujarat High Court ban on sale.

"Has Judiciary been effectively silenced?" he asked.

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