In his clash with India’s petrochemical giant, Reddy stood by his view that RIL was hoarding gas by slowing production in its offshore fields in the Krishna-Godavari basin. This, the oil ministry felt, caused a loss of Rs 40,000 crore to companies in the current year while it was Rs 20,000 crore last year. The Reliance-led consortium has said the problems are related to geological complexities. But Reddy had asked arbitrators to look at the matter as he did not want to get into the geological reason of slowing down of gas production and hence resisted the increase in gas price to increase production.FirstPost: Govt run by corporates? Reddy’s shift out of oil triggers storm
Prima facie the shift implies that corporate lobbies work in India and can bend the government to their interests. Even former Infosys director Mohandas Pai agrees Reddy’s ouster was a “big negative”.