GSPC debt: Congress targets PM Modi; seeks probe by SC judge into GSPC debt

Launching a vitriolic attack on Prime Minister Narendra Modi for "misleading" the country, senior Congress leader Jairam Ramesh on Wednesday demanded a Supreme Court-monitored probe into "squandering" of Rs 20,000 crore by Gujarat State Petroleum Corporation (GSPC).

"(The) Prime Minister has misled the nation. There are two types of politicians. One, who speaks lie for personal gain and (the) other, in whose blood lies are inherent, (in) whose DNA it is inherent to speak lies. Prime Minister comes in the second category," Ramesh told reporters.

Congress had earlier this month sought a discussion in Rajya Sabha on a CAG report regarding "anomalies" in Krishna Godavari (KG) Basin gas project claiming that the Gujarat government, under Modi, had created a "hype" over the project though it failed to strike gas despite spending crores of rupees on exploration.

"There is a controversy regarding BA and MA degrees of Prime Minister. But I would like to go in what he did in KG," the former Union Environment minister told reporters while referring to the KG basin project where GSPC had obtained a block for gas exploration. Modi had in 2005 declared that there was 20 trillion cubic feet gas in KG basin 'Deen Dayal' block obtained by GSPC. Little did we realise then that this announcement was part of a big master plan to borrow enormous sums of money from banks to be used recklessly. In the last 11 years, GSPC has borrowed Rs 20,000 crore from banks and has not yet commercially produced any gas. What happened to all this money? ... It was squandered away," Ramesh alleged.

He said a consortium of 15 banks led by the State Bank of India had extended loans to GSPC.

"(However) they (loans) would be NPA (non-performing assets) now as GSPC is a sick company. I want to ask RBI governor Raghuram Rajan (that) when he is very strict about showing of NPAs of private companies, will he also reveal NPAs of public sector undertakings like GSPC," Ramesh asked.

He claimed, "Unlike the previous CAG reports in 2G and Coal where the loss was presumptive, this one is an actual figure of Rs 20,000 crore borrowed and squandered away".

Seeking "answers" from Prime Minister on GSPC issue, Ramesh demanded an inquiry by a sitting Supreme Court judge. He also questioned the overseas acquisition of gas blocks by GSPC in Egypt, Australia, Indonesia and Yemen.

"The company acquired 11 gas blocks overseas, out of which by 2015, 10 were surrendered as they could not find gas and wrote off Rs 2,000 crore. For a company that had no prior experience in operating blocks there, GSPC's reckless acquisition spree of overseas blocks calls into question both its business acumen as well as its intent," Ramesh said.

The Congress leader also questioned GSPC on the contracts and partnerships with "dubious entities" like GeoGlobal Resources and Tuff Drilling, claiming they had no prior experience in oil and gas exploration.

"CAG in its recent report has clearly spelt out how nearly Rs 20,000 crore was a wasteful expenditure with no proper process followed," he said.

When asked if the Congress is raking up the GSPC issue to counter BJP's attack over alleged corruption in execution of the AgustaWestland chopper deal, Ramesh said no Congress leader has taken bribe in the deal.

"We have asked for a court-monitored inquiry into the deal. We do not have faith in the investigative agencies which are under Narendra Modi," Ramesh said.

When asked about his earlier statement comparing 'Gujarat with Afghanistan', Ramesh said he did so in the wake of the Prime Minister making an "outrageous" comment equating Kerala with Somalia.