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Modi gave 20,000 crore worth Gas contract to a company worth just $64

Discussion in 'National Politics' started by Kejriwal4PM, Nov 29, 2012.

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  1. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    In perhaps what would qualify as one of the most scandalous contracts ever signed, the Modi regime gave away a 10 percent participating stake in an expansive gas field it had won in a bidding process to a company named GeoGlobal Resources that existed only on paper. The company, incorporated in Caribbean Island of Barbados, had a capital of just $64.

    The deal was inked in March 2003, when the BJP was in power both at the state and the Centre. Shockingly, the Barbados-based company didn’t pay a single cent for its stake. Even the company’s 10 percent share to the cost of exploration was borne by a state PSU, the Gujarat State Petroleum Corporation (GSPC). Within days of signing the contract with the Gujarat PSU, GeoGlobal parked 50 percent of its stake in the KG Basin to another shell company in Mauritius.

    The Gujarat government has justified this sweetened deal on the sole ground that GeoGlobal was a technical expert and had helped the government in preparing the geological model for gas exploration. But in its latest report, the CAG has pointed out that GeoGlobal’s technical assistance has been so deficient that GSPC had to hire another technical expert to revise the geological model from scratch. The revised technical advisory work cost the government just Rs 2.64 crore. While for the same work, it had given GeoGlobal a permanent stake of 10 percent worth millions of dollars.

    At the time of bidding, the Gujarat government claimed that the gas field, designated as Block KG — OSN — 2001/3, had over 45 trillion cubic feet of recoverable gas. As per the Modi government’s own estimates, the gas field was worth about $20 billion.

    The absurdity of the deal could be gauged from the fact that the Modi government gave away 10 percent stake, which in its own eyes was worth millions of dollars to GeoGlobal on the ground that the company had international experience and a proven track record in the oil and gas exploration field. On the other hand, in its disclosures before the US authorities, GeoGlobal told its shareholders that the company had no exploration experience before venturing into India and the GSPC-led joint venture was its first foray in the oil and gas exploration business.

    Shockingly, GSPC also agreed to contribute GeoGlobal’s share of 10 percent to the venture fund set up for the exploration activities and the same was to be recovered only after the joint venture starts earning revenues from the sale of gas.

    Reportedly, GSPC has so far spent around $3.069 billion (~ Rs 20,000 crore) towards exploration costs. GeoGlobal should have contributed $306.9 million out of the total cost. But it is the taxpayers of Gujarat who have been made to fund GeoGlobal’s share of expenditure.

    Read the detailed report here: Sweet Deals Are Made Of Gas
     
    Last edited: Nov 29, 2012
  2. Guynextdoor

    Guynextdoor Lt. Colonel SENIOR MEMBER

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    I was hoping that at least he would turn out not corrupt.
     
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  3. Bad Wolf

    Bad Wolf Major SENIOR MEMBER

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    this all thing came after tender and L! win tender and every one come to know the L! bid price so are you sleeping till date and what happen to ONGC why confusing other
     
  4. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    Yeah, shock can sometimes make people talk gibberish :p

    There was no tender for the 10% giveaway. Doesnt matter when the deal was was inked (and 9yrs is not so long ago anyways and gujarat govt is continuing to pay to that scam company till today). And there is no ONGC, it is Gujarat State Petroleum Corporation (GSPC) that is involved.
     
  5. Himanshu Pandey

    Himanshu Pandey Don't get mad, get even. STAR MEMBER

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    what is it?
     
  6. Osiris

    Osiris Major SENIOR MEMBER

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    who told you there was no bidding ? there was bidding for NELP III ( Latest Releases ) and here is petrolum ministry doccument on Block awarded to GSPC -GEO -GPL( http://www.google.co.in/url?sa=t&rc...zoCYCQ&usg=AFQjCNGLyOkoqRW70jOAhmdwL5N_Jr0I2g) ....The block was awarded by petroleum ministry not by Modi
     
    Last edited: Nov 29, 2012
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  7. Osiris

    Osiris Major SENIOR MEMBER

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  8. Osiris

    Osiris Major SENIOR MEMBER

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    that company raised 70 million from USA in 2002 ,but author of this article claims its a 64 $ company .....
     
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  9. Himanshu Pandey

    Himanshu Pandey Don't get mad, get even. STAR MEMBER

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    another propaganda busted.... great work osiris
     
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  10. brahmos_ii

    brahmos_ii Major SENIOR MEMBER

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    @Kejriwal4PM
    What are your intensions of your posts, I can just see that you want to promote Kejriwal by showing others as criminals; I’m not supporting anybody here.
    Why don’t you choose a political forum rather than a Military one.
     
  11. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    @Osiris

    Dude, you are making me summarize things which are already clearly mentioned in my first post! And some cheerleaders who cheer without even knowing the rules of the game and who hit four and where! :hitwall:

    Anyway...

    On 27 March 2002, the Gujarat State Petroleum Corporation (GSPC), under Modi, formed a consortium with GeoGlobal Resources India Inc and an Indian company named Jubilant Enpro Pvt Ltd. GeoGlobal was incorporated only six days before, with a capital of 64$. This consortium wins a bid, 10% of which is owed to that company, Geo, that had no prior experience in exploration and no capital other than 64$ and money that it raised (as you informed).

    The article says:

    Also, GSPC also agreed to pay for GeoGlobal’s share of 10 percent in the joint exploration costs and the same was to be recovered only after the joint venture starts earning revenues from the sale of gas. So, if that company Geo neither had experience in exploration and neither contributed to the exploration cost, why was it even included? Just to giveaway profits for free!

    GSPC has so far spent around $3.069 billion towards exploration costs. GeoGlobal should have contributed $306.9 million (its 10% share) out of the total cost. But it is the taxpayers of Gujarat who have been made to fund GeoGlobal’s share of expenditure.
     
  12. smestarz

    smestarz Lt. Colonel REGISTERED

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    omya likes this.
  13. Osiris

    Osiris Major SENIOR MEMBER

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    @ Kejriwal4PM ,your claims that company was formed just six days before formation of consortium ,it was a 60$ company ,they dont have expertise in oil and gas field ,there was no bidding for their allocation ,they didnt give 10% of exploration expenses,and they sold 50% (actual 5%) to another company ..do you have anything more ?

    1) that company was started in 2002 agree with that ,and whats wrong in it?

    2) and that company raised 70 milloin in 2002 much before gas field awarded so it proves it was not a 60$ company

    3)Company was a new one in 2002 but Jean Paul Roy founder of that company, is a geologist by profession and had worked with various oil companies as a geological expert before forming this company.

    4) there was competitive bidding process for NELP III through which these gas fields are awarded ..

    5) there is dispute between GSPC and Geo based on expenses ,GSPC (which is under Modi) demanded that amount in 2007 and 2010 ..and in my knowledge that dispute is not settled till now
     
    Last edited: Nov 29, 2012
  14. Kejriwal4PM

    Kejriwal4PM 2nd Lieutant FULL MEMBER

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    That company raised money with no infra from it and no experience - just on the fact that it has a 10% stake in GSPC and that KG basin. With such a bid, GSPC could have itself raised that money in US by showing its own credentials. Geo brought nothing to the table to deserve that 10% stake. That guy Roy could have been engaged for much less fee if GSPC just wanted to engage his services. GSPC would have won those bids even without Geo. And yet it included Geo when Geo brought nothing comparable to that 10% stake. Sure, even UPA and Reliance Petro have a 10yr dispute on KG basin on paper.

    This "sweat equity" is exactly the same scam of Tharoor and his sweetheart, whom Modi called the 50cr girlfriend

    PS: The 50% refers to 50% of the 10% stake in the consortium. Anyway, thats not important.
     
  15. Vidyanshu

    Vidyanshu Lieutenant FULL MEMBER

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    B***h plz!!
     
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