CAG tabled audit reports of RIL & Air India in Parliament.

RILNew Delhi: The CAG report on audit reports of oil and gas blocks operated by firms including Reliance Industries and Cairn India tabled was tabled in Parliament on Thursday.

The CAG in its report has asked the Oil Ministry to re-examine decision to allow Reliance Industries to keep entire KG-D6 block.  It has also called for an exhaustively review of 10 contracts, including 8 awarded to Aker Group, by Reliance for developing KG-D6 finds.

According to the CAG report, RIL did not abandon 25% Of Total Contract Area and violated Production Sharing Pact on KG D6.

The CAG report also slammed the Directorate General Hydrocarbons (DGH) for having failed To Pursue Technical Aspects of KG DWL Block. DGH should have stopped RIL from proceeding on D6 Phase 2, the CAG report said.

CAG had alleged that RIL had revised the costs of developing the field by over $6 billion. Operators like Reliance are allowed to recover all capital costs incurred in developing a field from revenues earned from the sale of oil or gas before profits are split between the stakeholders, including the government. Thus, an increase in capital expenditure badly affects the government’s profitability.

The final report also includes some of the responses by RIL against CAG allegations. Replying to the draft audit report in July, Reliance said that “The CAG has set a benchmark for the lowest project costs across the world.”

RIL further claimed that the development cost in KG-D6 gas field was much less than what Gujarat government company GSPC and state-owned ONGC were spending on projects in the environs of its KG basin find.

1 Comment

  1. Dinesh says:

    Now the CHOR COMMITTEE would meet at PM’s house on How to create Log-Jam in Parliament for not to answer Opposition and Master Liar Spokespersons to Cheat and Fool Country. Seems, every Ministry had became PVT LOOTING BUSINESS on Tax-Payers. CAG needs to Audit FDI Investments if Genuine or LOOTED Money re-routed and invested. Every CAG Reports of UPA-2 must be Investigated by SIT under SC’s observation. Corruption is a Terrorism on Country who LOOTS Citizens and push millions below poverty line to suffer and CORRUPTS must be treated as TERRORISTS.

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