Relief for Reliance after Reddy’s exit from Petroleum Ministry
TNI Bureau: It could be a huge relief for Reliance Industries after S Jaipal Reddy’s exit from the petroleum ministry, who was accused of being regressive towards the firm during the past 22 months. With the transfer of Reddy from the ministry, the firm could now see no obstruction on its way to get its proposals cleared.
After the Cabinet reshuffle, shares in Reliance industries rose nearly 1.5% on Monday with a hope that the new petroleum minister M Veerappa Moily would consider its proposals and expedite the decisions on fuel reforms.
However, Reddy’ transfer from petroleum ministry to the science and technology ministry could be widely seen as a demotion. Even India Against Corruption (IAC) described the change as punishment for taking on Reliance.
Reddy was the big hindrance for Reliance after he refused to clear the $7.2 billion deal between Reliance Industries Ltd and British energy major BP Plc for selling stake in oil and gas blocks, including the showcase KG-D6 gas field. He had held the firm accountable for failing to produce the volume of gas from KG-D6. Even he had stopped the company from recovering Rs 7000 crore out of its investments, which sparked rift between the government and the firm.