Anil Ambani group seeks proper audit of Reliance gas costs | business | Hindustan Times
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Anil Ambani group seeks proper audit of Reliance gas costs

business Updated: Aug 25, 2009 15:39 IST

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Anil Ambani group on Tuesday questioned Mukesh Ambani-led RIL's explanation on over three-fold jump in costs to $ 8.83 billion for developing gas fields, and asked the government to expedite the CAG audit and appoint an international expert to revalidate the expenses.

"RIL has once again made vague and general remarks in its letter (to the government) without providing any substantial material justifying why the capital expenditure on KG-D6 gas has gone up from Rs 12,000 crore to Rs 45,000 crore, when the production only doubled from 40 mmscmd to 80 mmscmd," ADAG said in a letter to the Petroleum Ministry.

Questioning the independence of independent experts appointed by Directorate General of Hydrocarbon (DGH) in the wake of "several complaints regarding the gold-plating" of costs, it suggested that a reputed international expert with experience in deep-water blocks should "revalidate the capex".

In a letter, that became public yesterday, RIL had hit at the Anil Ambani group for unleashing a "malicious, baseless, mischievous and ill-informed" propaganda against its gas field costs and said that the campaign should be nipped.

Anil Ambani group President A N Sethuraman said in his letter that RIL communication had dismissed the "the growing and well-argued opposition to this totally unjustified increase by attributing it to self-seeking vested interests that are ostensibly out to malign the KG D6 project."