Radia Tapes: 059 - Radia, Manoj Warrier (11:58:49)
Duration: 00:06:11; Aspect Ratio: 1.250:1; Lightness: 0.053; Volume: 0.221; Cuts per Minute: 2.262; Words per Minute: 208.082
(Phone Ringing)
Nira: You see Manoj.
Manoj: Hmm!
Nira: Ashu has given a very interesting argument. He was on air with Latha Just now. Ofcourse Sajid gets it completely wrong and I am sure he is completely bought out, right?
Latha Venkatesh - CNBC Banking & Commodities Editor
Manoj: Hmm!
Nira: The thing is that he has raised an argument. He has raised three points.
Nira: You see, he's raised...First he is coming at it from the point of view that listen, my God. You may have...He is coming at the same price of dual pricing.
Manoj: Hmm.
Nira: He is saying that this is a natural resource, all that. He is saying all that right?
Manoj: Hmm.
Nira: The second point he is saying, I am a regulator. You're at a cost-plus.
Manoj: Hmm.
Nira: You have multiple companies where you are saying I have RNRL. RNRL will supply to XY. XY has an RINFRA, INFRA has got this. You know?
Manoj: Hmm.
Nira: And therefore you have... Where is your offtake?
Manoj: Hmm.
Niira: There is a cost-plus formula which exists as far as regulators is concerned. Are you really benefiting by this?
Manoj: Hmm.
Nira: If your saying I am charging a 2.3 therefore you will have a cost-plus formula as far as the consumer is concerned. You cannot make hefty profits, no?
Manoj: Hmm.
Nira: You'll pass that back to the consumer. That's the second thing. Then he says the third point, where are your... Where are your power plants?
Nira: You tell me where are your power plants. If RIL tomorrow says, ok, I am producing this...From tomorrow I am giving it to you.
Manoj: Hmm.
Nira: Where are you going to put it?
Manoj: Hmm!
Nira: You are not allowed to trade.
Manoj: Hmm!
Nira: That is the third point. The fourth point he's...he's come out with is that if I am a share holder of RIL, I am going to say why -
Nira: - I mean he is going to go back to the government and say that look my share holders are saying if I have to give this and it is going to make me lose so much money...
Nira: Given that the government has set the price of 4.2, why should I subsidise something like this?
Manoj: Hmm!
Nira: I am an operator. I don't own this gas.
Manoj: Hmm!
Nira: You know I have spent seven billion dollars in doing this. I don't want to do it. You give me my money back plus damages.
Manoj: Hmm.
Nira: He says that the government will be forced to take a corrective. So he says you know, lets not wade into this I think the High Court has just not understood it.
Manoj: Hmm!
Nira: Has gone into a completely different argument but the perspective is right
na?
Manoj: Hmm!
Nira: He is coming at it... He is saying where are you going to put the gas. Please tell me.
Manoj: Hmm!
Nira:
Ye CNBC me abi aa reha hai. (This is coming on CNBC now.)
Sajid ko usme... Ek question me usko bola. (He told Sajid in one question.)
Nira: Sajid, what is the current pricing worldwide? Sajid, what is it that your... Please tell me Sajid. Sajid said well right now it is about $6.
Manoj: Hmm!
Nira: So he says then fine.
Manoj: Hmm!
Nira: Your telling me that just because two brothers get into an argument, India should be deprived of this?
Manoj: Hmm!
Nira:
Usne ye agrument deya. Ashu ne Lata ne (Ashu and Lata both gave this argument.)
Manoj: Hmm!
Nira: I still think that there is scope for you to brief informally on these three four points very critically.
Nira:
Ke thumara regulator ka ek cost-plus formula hota hai. (That your regulator has a cost-plus formula.)
Nira: I don't know how the power thing works but what he is saying is...Therefore the benefit will have to go consumer.
Manoj: Hmm!
Teek hai. (Ok.)
Nira: So there are two points to this. One point is...You know, can there be dual pricing?
Manoj: Hmm!
Nira: To which I as a share holder, why should I pay out of my pocket for something that the government needs to decide on. I am only an operator of this.
Manoj: Hmm!
Nira: And thirdly if you want to open up the pricing, then open up completely.
Manoj: Hmm!
Nira:
Kya hua? (What happened?)
Manoj:
Haan, teek hai. (Ok.)
Nira:
Kya hua? (What happened?)
Manoj:
Nahi, nahi. (Nothing.)
Nira: What happened?
Manoj: Nothing, nothing.
Nira:
Acha Manoj, humne pehele ye jo unhone Friday - Monday ke leye bolata tho humne pro and cons kal he banaya tha ke kya hoga? (Ok Manoj, what they had said for Friday - Monday... Have we made the pro and cons yesterday about what will happen?)
Manoj:
Nahi vo tho ready hai boss. (No that is already ready.)
Ye sab arguments jo aap jo bol rehe hai vohi hum log abi kar rehe hai. (These arguments that you are telling me we are already doing that.)
Nira:
Nahi, nahi. Hum ne decide nahi keya tha ke agar... (No,no. We had not decide that... ) ... if we win what the scenario will be.
Nira: What should our position be and if we lose what our position will be.
Manoj: See, we never expected a one-sided judgement no?
Manoj: We were always firm that it will be a 50-50 type of decision and depending on what the written judgement is we will decide on our second course of action.
Nira: Haa, but listen, I don't understand what you guys are doing at court.
Manoj: We are feeding in these things only. The dual pricing. The fact that where is the power plant for them to take the gas.
Nira: Haa!
Manoj: We are feeding these thoughts in the minds of the journalists. So we will leave now.
Nira: No but listen. I do think that this...
Manoj: We are putting enough doubt in the minds of the journalists to not say... (Inaudible).
Nira: Haa!
Manoj: ... This judgement is no different from the single judge judgement and that therefore the unit is status quo. And we continue to supply gas.
Nira: Haa! Where will you put the gas
na? He's not allowed to trade, is he?
Manoj: Yeah! Yeah! So that is what we are feeding into the minds of the journalist. That's it.
Nira: The other thing Manoj, very critical, when does the 17 years start from?
Manoj: Haa! One doesn't know.
Nira: Haa! So when the 17 years is starting from tomorrow, so then...
tho nahi ho sakta hai na? (... it can't happen, can it?)
Manoj: Hmm!
Nira: He is on his case that about we will get 12 MMSCDS...MMSCMD's.
Nira: if NTPC forgoes the gas from RIL.
Vo tho 12 plus 28 ke bath kar reha hai. (He is talking about 12 plus 28.) So where is he going to put it?
Manoj:
Nahi, nahi, abi tho vo bol reha hai ke... ( No, no, now he is saying that...) 40% of all gas reserves is ours. That is his later statement.
Nira: Haa...
Manoj: Mukul Rohatgi has mentioned that.
Nira: Haa...
Manoj: That the MOU says that 40% of all gas reserves is mine.
Nira: Haa. So we will have to men... We will have to give this messaging. I hope somebody is at the office copying what the messaging is
na?
Manoj: Yeah, yeah! They are messaging. They are sending updates every time.
Nira: No, no can you just make sure the updates are going to the client? He needs to know what they are saying
na?
Manoj:
Theek hai. (Ok.)
Nira: You and I don't need to know this.
Manoj:
Raja ko bhej detahu. (I will send it to Raja.)
Nira: No Raja, MM... I think quickly do a quick mail that these are the following statements that have been made by the other side.
Manoj:
Theek hai. (Ok.)
Nira: And you can talk about this as the counter argument that is coming in.
Manoj: Ok.
Nira: You know please advice what do we go with, you know?
(Tape ends.)
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