Reliance Industry Limited (RIL) which is already facing criticism for pumping less gas than it should have from the key D6 block is once again under scanner for its alleged nexus with the Oil ministry for the KG basin gas contract.
The CAG report has said that the energy major Reliance Industries had inflated development costs on its D6 block in the Krishna-Godavari basin.
The CAG report which has ignited a lot of political fire also noted that former Director General of Hydro-carbons (DGH) permitted Reliance to inflate its development costs on extracting the gas in the D6 block to the KG basin from $2.47 billion to a whopping $ 8.84 billion.
The CAG also cited a joint venture of Reliance with BG and ONGC for hiking development costs in the Panna-Mukta and Tapti gas fields, newspaper reports added.
The Comptroller and Auditor General's (CAG) had asked the oil ministry to reply within two weeks as to why it had allowed some explorers to overstate costs of field developments and explore beyond their contracted areas, a newspaper report said.
It has been earlier been alleged that an Empowered Group of Ministers (EGoM) had allowed RIL to sell per unit of the gas at a price of rupees 4.20 even as the government companies were selling the same for just rupees 1.20.
In a statement issued late Monday this week, the oil ministry said it was examining the draft report, received on June 8, and would prepare a reply to the audit observations after obtaining details from relevant agencies.
The CAG report comes at a time when the government is struggling to fend off allegations of massive corruption in awarding of telecoms licences that may have resulted in revenue losses worth billions of dollars.
The CAG report has said that the energy major Reliance Industries had inflated development costs on its D6 block in the Krishna-Godavari basin.
The CAG report which has ignited a lot of political fire also noted that former Director General of Hydro-carbons (DGH) permitted Reliance to inflate its development costs on extracting the gas in the D6 block to the KG basin from $2.47 billion to a whopping $ 8.84 billion.
The CAG also cited a joint venture of Reliance with BG and ONGC for hiking development costs in the Panna-Mukta and Tapti gas fields, newspaper reports added.
The Comptroller and Auditor General's (CAG) had asked the oil ministry to reply within two weeks as to why it had allowed some explorers to overstate costs of field developments and explore beyond their contracted areas, a newspaper report said.
It has been earlier been alleged that an Empowered Group of Ministers (EGoM) had allowed RIL to sell per unit of the gas at a price of rupees 4.20 even as the government companies were selling the same for just rupees 1.20.
In a statement issued late Monday this week, the oil ministry said it was examining the draft report, received on June 8, and would prepare a reply to the audit observations after obtaining details from relevant agencies.
The CAG report comes at a time when the government is struggling to fend off allegations of massive corruption in awarding of telecoms licences that may have resulted in revenue losses worth billions of dollars.
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