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Prabhu carries on the battle with Swraj Paul

Former Union fertiliser minister R Prabhu has dismissed as canard, British industrialist Swraj Paul's assertion that his licence for a multi-crore fertiliser project at Shajahanpur was cancelled since he declined to oblige Italian firm Snamprogetti at the behest of then prime minister Rajiv Gandhi.

Prabhu said the decision was taken since Paul's group failed to acquire land for the project even three years after it was given the letter of intent.

In a lengthy rejoinder to certain statements made by Paul in his autobiography, Prabhu said, ''What amazes me is the timing of his allegations. Like all fair weather friends he has chosen to speak when a non-Congress government is in power.''

Swraj Paul had alleged that Prabhu and Ottavio Quattrocchi had pressurised him to buy the Snamprogetti equipment for his proposed fertiliser project despite his reservations. Paul had also stated in his memoirs Beyond the Boundaries, that he fell out with the late Rajiv Gandhi because he refused to oblige Quattrocchi, a representative of the Italian firm and a friend of the Gandhis.

Prabhu recalled that, since the Apeejay group failed to take concrete measures -- like paying for the land, acquiring the land and submitting contracts to the government -- the then Rajiv Gandhi government decided against renewing the LoI to put up the fertiliser project. Prabhu was fertiliser minister in the Rajiv Gandhi cabinet.

Referring to the charge that he pushed the costly Snamprogetti technology on the Apeejay group, Prabhu claimed he had then, for the first time, introduced the concept of international competitive bidding for all purchase of machinery for fertiliser projects.

Explaining the reasons for Swraj Paul's trenchant dislike for Rajiv Gandhi, Prabhu said the British industrialist could not forgive Gandhi for pre-empting his predatory moves to destabilise the Indian industry by taking over bluechip Indian companies like Escorts and the DCM. It was Gandhi's foresight that prevented companies like the Tatas, DCM and Escorts from being hijacked by dubious non-resident Indian firms.

Prabhu also denied the charge that he had pressurised Paul into buying machinery from Snamprogetti during his meeting with him in the early eighties.

UNI

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