CAG seeks disallowance of $970 million spent by RIL | Latest News India - Hindustan Times
close_game
close_game

CAG seeks disallowance of $970 million spent by RIL

Hindustan Times | By, New Delhi
Nov 29, 2014 01:16 AM IST

The Comptroller and Auditor General of India (CAG) on Friday said $970 million (or around Rs 5,900 crore) of expenditure incurred by Reliance Industries Ltd (RIL) in its KG-D6 gas block off the coast of Andhra Pradesh should be disallowed.

The Comptroller and Auditor General of India (CAG) on Friday said $970 million (or around Rs 5,900 crore) of expenditure incurred by Reliance Industries Ltd (RIL) in its KG-D6 gas block off the coast of Andhra Pradesh should be disallowed.

HT Image
HT Image

In a report that was tabled in Parliament on Friday, the CAG has also pulled up the petroleum ministry for not being able to take timely decisions and delays in according approvals to RIL for developing the KG-D6 field.

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

"Petroleum ministry and the director general of hydrocarbons (DGH) are responsible for scrutinising development plans prior to their approval... CAG has noticed that there was uncertainty in the recoverable gas reserve estimates and substantial changes were made to it after the approval of development plan... this raises questions on the process of examination, consideration and acceptance of gas estimates by the DGH," CAG noted in its report.

"Our attention has been drawn to the CAG Report tabled today in the Parliament. There are obvious differences between the CAG and RIL on certain basic issues concerning the Production Sharing Contract (PSC). Once we receive a formal communication of audit exceptions by the government, we will respond to the government in accordance with the provisions of the accounting procedure under the PSC and also exercise such other rights as are available to us in law," RIL spokesperson said.

In addition to the deficiencies of $690.7 million, CAG report said that an expenditure of $160.81 million incurred by RIL in KG-D6 block has also been found as "not eligible for cost recovery" by the petroleum ministry.

The CAG has further pointed out irregularities where RIL was "improperly allowed to do further exploration... these activities were not in line with PSC provisions."

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
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