CBI concludes KG Basin inquiry, seeks AG's opinion - Hindustan Times
close_game
close_game

CBI concludes KG Basin inquiry, seeks AG's opinion

PTI | By, New Delhi
Jun 06, 2012 07:23 PM IST

The CBI has sought Attorney General's opinion on registering a case in the alleged artificial cost inflation by Reliance Industries for the development of eastern offshore KG-D6 fields.

The CBI has sought Attorney General's opinion on registering a case in the alleged artificial cost inflation by Reliance Industries for the development of eastern offshore KG-D6 fields.

HT Image
HT Image

The CBI, sources said, has completed its inquiry into the alleged conspiracy in allowing RIL to raise cost of developing the KG-D6 field from USD 2.39 billion proposed in 2004 to USD 8.8 billion in 2006.

Hindustan Times - your fastest source for breaking news! Read now.

Controversial technocrat VK Sibal was the head of Directorate General of Hydrocarbons (DGH) which gave RIL approvals for raising the cost on the plea that gas reserves as well as cost of services have gone up.

Operators like RIL are allowed to recover all their cost before sharing profits with the government. Higher capital cost directly impacts the government's revenue.

The agency had registered a preliminary enquiry into the case in November 2009 on request of the Oil Ministry following several objections raised by CVC on the KG-D6 deal.

CBI sources said that probe has been completed in connection with the case and the matter has been referred to the Attorney General seeking legal opinion in the matter.

During its probe, the agency had taken the ministry's assistance to understand the arguments offered by Reliance when it raised the cost of developing Dhirubhai 1 and 3 gas fields in the KG-D6 block from USD 2.39 billion proposed in 2004 to USD 5.196 billion in Phase-1 and another USD 3.3 billion in Phase-II.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On